The RMI's National Franchised Dealers Association (NFDA) has welcomed the Bank of England’s decision to hold interest rates at their current level after an increase last month.

The rate currently sits at 5.5%, which Sue Robinson, NFDA director, thinks will allow the previous rises to feed through the economy. Interest rates have risen four times since August 2006.

Consumers face rising costs following previous interest rate rises, above-inflation rises in household costs, including council tax bills, as well as the need to pay off debt.

"All of these costs are impacting on consumer spending, which has a knock-on effect on business," said Robinson.

"By allowing a period of reflection to measure the impact of these rises on the economy, the Bank of England is giving consumer confidence the chance to recover," she added.