Bank Of England Leaves Rates At 5.5%

Date Published 08 June 2007

Interest rates were left on hold yesterday amid signs that four increases since August are starting to bite.

The Bank of England`s monetary policy committee left borrowing costs unchanged at 5.5% after rates hit a six-year high last month.

The decision came after Halifax reported that house prices rose only 0.3% in May, their slowest pace this year.

Britain`s biggest mortgage lender said that although the annual growth rate was still in double figures, at 10.6%, this was below the peak of 11.1% in March and the secong successive month the rate had edged down. The average house price now stands at £196,893.

Evidence of moderation in housing market activity, suggests that the interest rate rises since last summer are having an impact on the market.