Commenting on the decision, Merhdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: "It was widely expected there would be no change in the base rate this month, and many agree that base rates are likely to stay the same until the New Year.
"This is yet more good news for brokers, who have already experienced a recent surge in mortgage volumes in the last couple of months. Regardless of whether there is any change in the rate next month, brokers look set to finish 2005 on a strong note.
"Economists are likely to look closely at consumer spending patterns after Christmas to assess the impact of a possible rate change. If retailers do not report good sales levels over the festive period, then a rate cut could be on the cards."
However David Bexon, managing director of SmartNewHomes.com, said: "Although there are signs that the housing market is beginning to recover from its year-long slump, it is too early to call whether this will be a full recovery or just the temporary effects of the August rate change.
“The Bank of England has today missed the chance to provide some early Christmas cheer to consumers and homebuyers alike in the shape of a reduction in the base rate. Such a move would have provided the housing market with a positive end to what has been a difficult year and encouraged consumer spending in a crucial couple of months for the high street. Without this, there is likely to be a bigger than usual dip in activity and prices over the festive period as homebuyers remain cautious of an uncertain market.”
