MPC holds interest rates

There was no glimmer of relief for the high street today, as UK interest rates were left on hold again at 4.5 per cent.

The announcement followed the Bank of England's two-day meeting. The Bank's Monetary Policy Committee (MPC) is believed to have based its decision on signs of a sustained recovery in the housing market.

However, some economists believe the MPC will make a rate cut later this year, possibly in spring. They claim the Bank is waiting for details of the latest pay round, together with revised inflation and growth forecasts, due to be published next week.

The last time rates were cut was in August last year, when they fell 0.25 per cent.