THE decision by the Bank of England to hold interest rates at six per cent has been welcomed by two business support organisations.

Bolton and Bury Chamber and the Engineering Employers' Federation (EEF) have given their backing to the move to leave the rates unchanged.

Richard Bindless, Bolton and Bury Chamber chief executive, said: "It is good news that the Bank has decided to maintain the existing rates.

"Sterling remains a problem for exporters and local manufacturing remains in a fragile position."

He added: "A rise at this time would have severely hampered their prospects of recovery and had a knock on effect across the rest of the economy.

"We urge the Bank to resist further rate rises unless there is unrefutable evidence of inflationary pressures."

Andrew Semple, spokesman for the EEF, said: "The stability promoted recently by the Bank's monetary policy committee (MPC) and the confidence it brings is good for the investment.

"However, EEF members feel that interest rates have now hit their peak after six months at six per cent and it is time the MPC gave an indication of this and look at taking rates down."

He went on: "With interest rates likely to rise in the Eurozone, a cut in the autumn would be the boost that manufacturing exporters have been looking for."