Sterling enjoyed a positive reaction this afternoon as the currency continued to prove buoyant.

The dollar stood at 1.8476 to sterling this afternoon, while the euro was at 1.4574 against the pound.

The main news in the UK today was the decision by the Bank of England to keep the interest rate on hold at 4.5 per cent.

The decision signalled the ninth month in a row that the rate has stayed on hold, with the monetary policy committee (MPC) showing no signs of changing the rate in the short-term.

The British Chambers of Commerce (BCC) welcomed the news, praising the MPC for making "the right decision today".

However, BCC director general David Frost did warn: "But we strongly urge the MPC to maintain a flexible approach, and react quickly to renewed signs of economic weakness."