THERE has been mixed reaction to the Bank of England's latest decision to peg interest rates at four per cent for the tenth successive month.

While Bolton and Bury Chamber have welcomed the move, a North West engineering employers organisation has expressed disappointment.

Commenting on the rate freeze, Andrew Ratcliff, chief executive of Bolton and Bury Chamber, said: "Our members will welcome this news, which in the face of an uncertain and tough economic climate, will keep the costs of borrowing low. With growth forecasts being revised downwards and the cloud of uncertainty hanging over the global economy, this is a sensible move by the bank."

Meanwhile, the North West region of the Engineering Employers' Association (EEF) has expressed disappointment at what it termed a "missed opportunity" to boost recovery prospects in the sector.

Andrew Semple, EEF spokesman, said: "This is a disappointing decision for the manufacturing sector where all the evidence is pointing to a recovery that has stalled. Overall growth is now slowing and external economic indicators are not inspiring confidence in the medium term.

"With inflation well under control, the Bank of England had room to reduce interest rates and a quarter point would have helped prevent the recovery weakening further."