The Bank of England's Monetary Policy Committee today voted to maintain the Bank's repo rate at 4.0% for another month. The last time rates were changed was in February when the rate was raised to 4% by 0.25%.

Mortgage holders will be pleased by the decision but experts all agree that the stay of hand is only temporary and homeowners should expect a rise next month.

The decision was a tough call for the committee this month as the pressures to raise were finely balanced against those to hold. Earlier in the week a poll of experts from Reuters showed nearly half predicting a rise, with the rest saying rates would stay at 4%

Recent figures from the UK's main mortgage lenders clearly show house price growth accelerating again and mortgage equity withdrawal hit a record £16.2bn during the last three months of 2003. The Bank has clearly expressed concern over house prices and borrowing.

However the overriding concern may have been industry figures which despite showing a recovery earlier in the year have recently indicated a fall in output. Doug Godden, CBI Head of Economic Analysis, said earlier that there were good arguments for the Bank to take a cautious approach, particularly in light of the recent strength of the pound.

Also, overall inflation as measured by the Consumer Price Index remains well below the Bank's 2% target at 1.4%, giving little immediate cause for concern.