The Retail Motor Industry Federation (RMI) is calling on the Bank of England to cut interest rates after a drop in car sales during January. According to figures from the Society of Motor Manufacturers and Traders (SMMT), the number of new cars sold during

January 2008 was 162,097, down 2.1% on 2007. Sue Robinson, director of the RMI’s National Franchised Dealers Association (NFDA), said: January’s car sales dip masked growth in a number of niche segments, but for sales to rise through 2008 interest rates must be reduced.

“Consumers have suffered economic uncertainty and rising household costs during the past year. The Bank of England must reduce interest rates to help promote growth.”