Last month the Bank’s Monetary Policy Committee (MPC) voted to increase rates by 0.25 per cent to 4.75 per cent, but this month they voted to keep rates on hold.
However, it is widely predicted that rates will rise by the end of 2006.
Drew Wotherspoon of mortgage adviser, John Charcol, says: Its no surprise to see Base Rate held today as the true impact of last months increase, the first move in a year, is still to be fully felt.
“If the strong growth in the housing market reported by leading industry bodies continues for the next month, then this, coupled with the next quarterly inflation report, makes November the most likely time for another quarter point rise.”
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