MercoPress. South Atlantic News Agency

Bank of England rate unchanged at 4,5%.

The Bank of England this Thursday left interest rates unchanged at 4,5% after two successive months of rises. The decision was welcomed by manufacturers and mortgage holders, although market analysts believe the Bank's Monetary Policy will start raising rates again in August fearing soaring house prices and ever growing consumer debt.

The British Chambers of Commerce Director General David Frost reacting positively to the Bank of England decision said that "we are pleased the Bank has decided to hold this month. After consecutive monthly rises in May and June it would have been premature to put rates up again so soon".

Ian McCafferty from the Confederation of British Industry said the Bank was right in leaving interest rates unchanged, "business needs a breathing space to allow the impact of the last increases to take effect". Besides there are few signs of inflation pressures "that could seriously threaten the Bank of England's target".

"We are concerned that the increasing focus on house prices in the Bank's deliberations will be to the detriment of Britain's all important manufacturing recovery", said Mr. Frost warning that the modest upturn in manufacturing is "vulnerable".

"The Bank was right to pause before the publication of its inflation report next month", insisted Mr. Frost.

The Bank of Europe in its latest meeting also left rates unchanged. Only the US Federal Reserve raised the basic rate 25 points to 1,25%, still one of the lowest in over half a century.