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Rates Stay at 4.5% As Housing Picks Up - The Metro Oct 2005

Interest rates were kept at 4.5 per cent for the second month in a row yesterday, amid growing signs of a recovery in the housing market. The Bank of England left rates alone despite concerns about a weakening economy.

Economists said the Bank's monetary policy committee would wait to see the impact of August's rate reduction before cutting interest rates further.

The Bank's decision came amid growing evidence that August's quater-point cut may have revived the property market.

The Halifax said property prices increased by 1.2 per cent -- The biggest for a year.