11:31 AM EDT, 09/18/2024 (MT Newswires) -- BofA said Wednesday it expects lower interest rates to strengthen sales of new vehicles, adding to pent-up demand and incremental mass market model launches.

The firm said its global economics team expects the Federal Reserve to reduce rates by 25 basis points in September and deliver 25 basis-point cuts at a quarterly pace after that.

BofA said a potential Fed easing cycle is likely to provide consumers some relief in monthly payments, with each 100 basis-point cut equating to a roughly $20 decrease in an average monthly payment for a new vehicle.