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