The Bank of England's monetary policy committee has left interest rates unchanged at four per cent.

Interest rates are currently at the lowest level since 1963.

Forum Response: Institute of Directors

Ruth Lea, head of the policy unit at the Institute of Directors, told ePolitix.com: "The economy is giving conflicting signals at present with chill in some sectors, for example manufacturing, and possible overheating, notably consumer spending, in others. Under these circumstances today's decision by the Bank of England seems sensible.

"Even though there are still worries about the domestic economy and the global situation still looks grim - though we expect the US economy to pull itself out of recession by the second half of this year - we do not, on the whole, expect further cuts in interest rates unless there is a rapid deterioration in economic activity. The bias now, therefore, seems to be towards monetary tightening.

"But, as we take the view that Sterling should remain firm this year and consumer behaviour will moderate to more sustainable levels, such tightening should only be modest this year. This scenario would change, of course, if sterling fell significantly and/or recent consumer behaviour were to be maintained."

Forum Response: Federation of Small Business

A spokesman for the FSB told ePolitix.com: "We welcome today's decision by the monetary policy committee to leave base rates unchanged. FSB members will be pleased that there has not been a hasty reaction by the MPC to the Christmas spending spree.

"There now needs to be a period of stability surrounding interest rates and we believe that the current 4 per cent base rate is about right."

Forum Response: Building Societies Association

A spokeswoman for the BSA told ePolitix.com: "This is entirely the right decision in the circumstances. Savers will be relieved that they will see no further reductions in their income, while borrowers will be noting that they will not be seeing a reversal of the recent reductions in rates, as occurred last year."