The NFDA has welcomed the Bank of England’s decision to leave interest rates at 0.25%, stating that it “protects the interests of our industry”.

The Bank of England voted unanimously to leave interest rates at the record low rate but warned that there could be changes in the new year as changes in inflation and growth take hold.

Quoted in the Financial Times, the bank’s Monetary Policy Committee said: “Monetary policy can respond, in either direction, to changes to the economic outlook as they unfold to ensure a sustainable return of inflation to the two per cent target.”

NFDA director Sue Robinsin said that it had been “positive to see that the Bank of England has decided to hold interest rates at their record low of 0.25% marking a quiet end after a turbulent year for the UK economy.”

Robinson added: “With this decision, the Bank of England protects the interests of our industry as low interest rates, combined with record low unemployment levels, will continue to support consumer confidence to commit to large purchases including cars.

“Overall, the UK economy has proved its resilience during the turmoil following the decision to leave the EU, with the automotive sector remaining on record levels.

“It is vital that the Government continues to monitor the UK economy closely and takes all necessary measures to ensure cost increases will not have a big impact on consumer spending.”

Consumer spending continues to grow solidly in the UK, according to the FT.

The Office for National Statistics reported that retail sales had grown by 0.2 per cent in November, following 1.9 per cent growth the previous month.

However, the BoE noted that the global economic outlook had become more “fragile” and there had been a decline in confidence among domestic consumers.