Bank holds interest rate amid jitters

Last week, Nationwide predicted a rate rise in November following an increase in house price inflation of 1.3% last month while Halifax said yesterday house prices rose 1% in September. While both lenders expect house price inflation to ease in the run up to Christmas they say this is likely to be caused by higher utility bills and increasing interest rates rather than because of economic instability, higher jobless figures or a fall in consumer spending. Nationwide also pointed out yesterday that consumer confidence had recovered from its recent fall over the summer suggesting the MPC’...