Millions of homeowners breathed a sigh of relief yesterday after the Bank of England opted to keep interest rates at 4.75%.
Economists had predicted the move after a string of surveys and official data pointed to a slowdown in consumer spending and a possible end to the house price boom.
Despite the reprieve, experts warned households that a further increase in interest rates was likely before the end of this year.
A rate rise today would have added £10 a month to an average £65,000 mortgage and represented the second time that the Bank's Monetary Policy Committee (MPC) has backed consecutive month-on-month hikes.
Friday September 10, 2004
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