HOMEOWNERS breathed a sigh of relief yesterday after the Bank of England voted to keep interest rates on hold at 3.75 per cent.
The Bank's nine-member monetary policy committee (MPC) froze the base rate for the second month in succession after raising it in November for the first time in almost four years.
Economists said initial signs that consumer spending had been satisfactory, though not extraordinary, during the Christmas period, were likely to have influenced the committee's decision.
Members are also likely to have been swayed by a surprise fall in December's inflation figure - down to 1.3 per cent against a new Government target of two per cent.
But with economic growth picking up, many analysts are tipping an increase to four per cent as early as next month.
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