Interest rates held at 5.75 per cent

The base rate of interest has been maintained for the fourth consecutive month.

Members of the Bank of England's Monetary Policy Committee (MPC) met today and reached the decision.

It is bad news for first time buyers, many of whom were hoping for a cut to be announced.

However, Abbey says that we may not have to wait much longer for interest rates to fall

"The Inflation Report, to be published on the 14th November, should give some key insights into how the MPC [Monetary Policy Committee] members view the possible implications of recent events for the economy and interest rates," commented Barry Naisbitt from the firm.

"Inflation has fallen to 1.8 per cent and the uncertainty created by the turmoil in global financial markets could dampen activity growth, particularly in the US. As a result, the focus of a few months ago of the possibility of higher rates has changed to the discussion of when rates will be cut. 

"I expect that the MPC will want to see more evidence on how the economic picture is developing before deciding to act," he added.

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