Interest rates remain on hold

The Bank of England`s monetary policy committee has decided to hold interest rates at the current level of 5.75 per cent for the third month in a row.

After five rate rises within 12 months, the Bank has decided to keep levels the same in an effort to cool the current turbulence within the financial markets.

The news has had a mixed response from the financial industry, with Alliance & Leicester praising the Bank of England`s cautious approach, while the Fair Investment Company said the decision was "disappointing" for homeowners.

Council of Mortgage Lenders director-general Michael Coogan said: "We did not expect the Bank to cut rates today, but we do hope for and anticipate a cut in November. Even this is not a certainty though, so borrowers should continue to plan for rates at or around current levels."

Last month, the Bank of England provided liquidity support for mortgage lender Northern Rock.

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