The Bank of England, in a widely expected decision, today left its key interest rate unchanged at 4% for the tenth month running.
While the British economy is slowly recovering from the downturn earlier in the year, slowing retail sales and benign inflation mean the Bank's Monetary Policy Committee is in no hurry to start taking back any of last year's sharp monetary easing, analysts say.
Economists last week had predicted a 'no change' decision this week and most expect rates to remain at their current 38-year low until well into next year, but a growing number think another cut in rates might by needed by the fourth quarter if the world economy takes another dip.
The MPC made no statement accompanying its decision today.
Financial markets showed little reaction although it will not have escaped the MPC's notice that the FTSE 100 stock market fell below the key 4,000 level again while it was holding its meeting - a drop of over 5% since it last met.
The MPC is charged by the government with hitting a target for underlying inflation of 2.5% with an undershoot considered as bad as an overshoot. Inflation is currently at just 2%, and has been below target for most of the past three years and the MPC itself expects it to stay that way for the best part of another two years.
