There is some good news amongst all the worries in the world financial markets...
...the Bank of England has decided to keep UK interest rates on hold at 5.75% for October!
The decision marked the third meeting in a row that the monetary policy committee has left rates on hold, having raised them five times since August last year in a bid to cool the overheating economy!
Economists say the Bank is adopting a "wait-and-see" policy on rates until a clearer picture emerges of the effects of the recent global credit squeeze.
Although the no-change announcement was widely expected, many economists believe that interest rates wil be cut either next month or in December (which can only be a good thing!)
The Bank also kept rates on hold last month, but that was before the Northern Rock crisis started when they had to secure emergency funds from the Bank after the downturn in the global credit market.
With the problems in the global credit market making it more expensive for commercial banks to lend and borrow from each other, an interest rate cut would have helped to ease this situation.
And lets face it, a rate reduction would also have helped many homeowners who have seen their mortgage rates increase this year!
But with Halifax recently reporting that house prices suffered their first fall this year in September, there is a growing feeling in the City that a slowdown in the economy is already underway, one that can only be exacerbated by the credit market crisis which sparked the run on Northern Rock.
CBI chief economic adviser Ian McCafferty said: "An interest rate cut was unlikely this month as there are, as yet, few signs of any serious damage to the real economy from the upheaval in the money markets."
"What's not in doubt is that the next move will be down," he added.
The British Chambers of Commerce (BCC) said it wanted to see a rate cut in November.
"Following the Northern Rock crisis, the Bank of England must restore its credibility and authority," said BCC economic adviser David Kern.
"It must show greater sensitivity to the problems of the wider economy, while at the same time making it clear that it will not yield to outside pressures."
David Kuo, Head of Personal Finance at Fool.co.uk, says:
"We are not surprised that the Monetary Policy Committee has chosen to sit on the fence regarding interest rates this month.
"Arriving at a decision about interest rates this month must have been especially tricky given the turmoil in the credit market prompted by the near collapse of Northern Rock, the impact of high oil prices on inflation, and the risk of recession brought about by the credit crunch.
"However, consumers should not concern themselves too much with what the Bank of England may or may not do. Instead, they should focus on their own finances amidst the uncertainty in the credit market.
"There have been indications that borrowers with less-than-perfect credit records may be penalised by less favourable deals as banks tighten their lending criteria. However, the mortgage market remains competitive with attractive deals on offer.
"That said, homeowners should nevertheless try to throw as much as they can afford towards their mortgage especially if they are approaching the end of fixed-rate deals.
"So, while the Bank of England may be happy to sit on the fence, borrowers should not sit on their hands. Overpaying a mortgage is one of the easiest ways to cut the length of a loan and slash the amount of interest you pay."
So, it's some good news that interest rates aren't changing, and maybe we can look forward to a rate cut next month?
Lucky us!
Northern Rock scraps mortgages