Interest rates put on hold

INTEREST rates were held at five per cent by the Bank of England, despite hopes among homeowners that there would be a cut.

The bank's monetary policy committee made the decision at noon today after a two-day meeting.

Following on from last month's quarter per cent cut , from 5.25 per cent, it was expected that the monetary policy committee would hold off from lowering the interest rate further.

Craig Esplin, a financial adviser with Edinburgh company Fair Deal Mortgages, said the decision was disappointing for prospective home-buyers and homeowners.

He said: "I think it should have been dropped but they also have to look after inflation as well."