Bank rates are unchanged at 4.75%

Interest rates for September have been put on hold at 4.75%, as predicted.

This hold on rates followed interest rate increases five times since last November and is generally seen as a sign that house prices and borrowing seem to be slowing down.

Analysts are unsure if rates will stay the same until the end of 2004 and they privately suggest that a rate of 5.00% is more realistic by 2005.

"The evidence suggests the Bank has succeeded in taking the steam out of the economy without damaging manufacturing," said EEF chief economist Steve Radley.