4
Oct
Interest rates held at 5.75%
The Bank of England has kept interest rates at 5.75 per cent for
the third consecutive month.
The decision to keep the base rate as it is thought to have been
taken to allow the Bank to take stock of the ongoing turmoil in
international credit markets.
Economists had widely anticipated the move following evidence that
the five interest rates since August was beginning to curtail price
growth in the housing market.
Figures from the Halifax showed that house prices grew by 0.9 per
cent in the third quarter of 2007 – down from 2.3 per cent in
the previous three months.
Martin Ellis, chief economist at Halifax, said: "September's price
fall is consistent with the normal behaviour of the market during a
slowdown.
"A mixed pattern of monthly price rises and falls is a typical
feature of a more subdued housing market."
The rate of annual house price inflation is also slowing, according
to Halifax' figures, and is now down to 10.4 per cent, compared
with 11.4 per cent in the 12-month period to August.
