RATE-setters at the Bank of England were given plenty to ponder last night after figures on house prices and manufacturing output confounded expectations.
While experts are certain the Bank's Monetary Policy Committee (MPC) will keep interest rates at 4.75 per cent today, the data has muddied the economic waters, with house prices rising again but industrial activity firmly in reverse.
Economists said the latest factory output figures, which show the sharpest monthly drop for two years, could contribute to rates remaining on hold for the rest of the year as forecasts on third-quarter GDP are scaled back.
The view of MPC members on the housing market will also be harder to call after the Halifax announced a surprise 1.4 per cent rise in property prices for September.
That followed a 0.5 per cent drop in August after five rate rises since November appeared to have taken their toll on confidence.
The Halifax said the overall trend was still for an easing in house price inflation, adding that London and the South-East had provided the driving force for the increase.
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