NAEA welcomes rate decision

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Following the announcement by the Bank of England that interest rates will be held at 5.75 per cent this month, the National Association of Estate Agents (NAEA) has welcomed the decision.

Stewart Lilly, president of the association, said: "We are very relieved at the Bank of England's decision to maintain interest rates at their current level. There have been various economic factors, including fluctuation in the stock market, indicating that now is not the right time for an increase.

"We urge the Bank of England to continue to hold interest rates for the foreseeable future."

Since the crash of the sub-prime credit market in the US, stock markets have been shocked all around the world and many British banks have found themselves short of cash and lending power. Although analysts were predicting rates to hit six per cent this year, that now seems unlikely.

In a statement, the Bank of England's Monetary Policy Committee stated that it had carefully considered the fact that the recent credit squeeze could have on the inflation rate.

The CPI (consumer price index) currently stands at 1.9 per cent, under its target two per cent level. Interest rates have stood at 5.75 per cent since July.

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