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Bank of England keeps mortgages safe

11 February 2005
The Bank of England's Monetary Policy Committee has voted to keep interest rates at 4.75 per cent, bringing relief to mortgage-holders.

Yesterday's decision was anticipated by economists and businesses.

Philip Shaw, an economist at Investec, told BBC News Online on Tuesday that there was "insufficient ammunition" to effect either a rise or fall in interest rates this month.

The decision is good news for homeowners, as their mortgages will not increase in value.

The British Chambers of Commerce (BCC) reacted positively to the decision, but were quick to warn that any early increase would be unwelcome.

"British business expected today's MPC's decision to leave interest rates unchanged. We believe it is the right decision," stated David Frost, director general of the BCC.

"However, we are concerned by the clamour in some quarters for early interest rate increases, and we believe that these demands should be firmly resisted."

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