Interest rate reprieve set to boost van market

The Bank of England's decision to cut its interest rate is set to alleviate pressure on the commercial vehicles market.

A decision was made on Wednesday (October 8th) by the Bank's monetary policy committee to reduce the base rate by 0.5 per cent.

The knock-on effect should be a relaxation of financing in the industry, which could lead to higher sales of commercial vehicles in the coming months.

Sue Robinson, director of the Retail Motor Industry Federation (RMIF), said: "The Bank of England's decision to cut the interest … will hopefully help rebuild consumer confidence.

"Consumers desperately needed this long-awaited move, along with other bank support measures put in place by the government."

While the move will undoubtedly help kick-start the new commercial vehicle market, it remains to be seen whether it will increase the availability of cheap van insurance.

Statistics published earlier this month showed that there had been a nearly 20 per cent drop in the sale of new commercial vehicles during September.

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