The Bank of England has decided to leave interest rates unchanged.

Interest rates will remain at four per cent, having been kept on hold since November 2001.

Forum Response: Federation of Small Businesses

David Bishop, spokesman for the Federation of Small Businesses, told ePolitix.com: "For business and industry, the decision is a sensible reaction to the current economic climate."

Forum Response: Institute of Directors

Ruth Lea, head of the policy unit at the IoD, told ePolitix.com: "We welcome today's unchanged interest rates, especially as the jury seems to be out on the strength of the upturn in the economy.

"Last month most indicators seemed to be pointing to recovery but over the past month there have been some very disappointing developments. Yesterday's figure for manufacturing output was a true shocker.

"We still expect growth this year and, given the continued buoyancy in the housing market, we still expect some modest firming this year. But we do not expect the Bank of England to increase rates until there are more obvious signs of economic strength."

Forum Response: British Retail Consortium

Bill Moyes, director general of the BRC, told ePolitix.com: "The decision was what we were expecting. Our Shop Price Index figures released today show that strong sales growth is not creating worrying inflationary spikes in the RPIX.

"Consumers can still buy more for their money than they could in 1997. The current levels of consumer confidence should not give the Bank of England cause for concern as competition and efficiency in the retail sector continue to keep high street inflation way below any rises consumers are experiencing elsewhere."