CML: Interest rates held at 5%

CML director general, Michael Coogan said: "The MPC faced a difficult decision today in the face of rising inflationary pressures and a slowing economic outlook.

"Holding the Bank rate is better than raising rates, as one MPC member suggested last month, but a reduction would have been a welcome recognition of the current financial strains on households already struggling with hikes in other living costs.

"As a result of recent Bank rate reductions, mortgage rates are below their peak at the end of 2007 but many consumers will be looking to the MPC to respond soon to the slowing economy and reducing inflationary pressures."