7 July 2006
The Bank of England's Monetary Policy Committee (MPC) has announced that interest rates will remain at 4.5% for another month.
Although the decision was widely anticipated, it will still come as welcome news to borrowers, who will not have to pay higher rates of interest.
It is the 11th month in a row that the 4.5% rate has gone unchanged, with the last adjustment coming in August of last year.
Ray Boulger, a spokesman for independent mortgage advisor John Charcol, commented that any change in base rate would have been "a major shock".
"The UK housing market is steady, although the modestly rising national figures mask some sharp regional fluctuations," said Mr Boulger.
"The MPC will have factored in the probability of the year-on-year house price indices falling in the autumn as the strong growth seen in the last four months of 2005 falls out of the year-on-year figures," he added.
Mr Boulger also said that a "key influence" on the bank's future interest rate policy would be next month's quarterly inflation report.
The next change to the rate may well be upwards, as the economy continues to be strong.
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