The decision this week that interest rates would not change is affecting more than just the housing market. Rates for motor loans continue to remain high and after this news, it appears that they will remain that way for some time. Motor loans have definitely been impacted by housing market problems and there are few to go around at this time. Experts however that changes will soon come to the motor loan industry and feel that rates will be dropped later this year when the economy is more stable.
Jerry Blackett, chief executive of Birmingham Chamber of Commerce and Industry, said: “There is a general feeling among businesses that a cut in rates at the moment would fuel inflationary pressures and an increase would mean even harder economic times during the downturn.
“Latest figures on the construction industry show that orders are down 21 per cent in the second quarter of the year compared with the same period last year, and that’s how one sector is suffering.
“Stability on interest rates will at least give companies the chance to assess and plan without the yo-yo impact of not knowing what’s around the corner”.
Related reading: Motor Loans
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