The Bank of England left interest rates unchanged at 4% today, deciding against a third increase since November after some mixed recent data on the health of the British economy.
Economists had been split over whether the central bank's nine-member monetary policy committee (MPC) would raise lending rates this week, but most expect another increase at some point in the coming months. As usual when no change is made, the MPC gave no explanation for its decision.
The Bank of England last raised lending rates in February by a quarter-point, a move which was seen as an attempt to prevent the economy overheating and to tackle soaring consumer debt and house prices. Its approach contrasts with that of the US and eurozone central banks, which have not yet raised rates in the current cycle.
But despite two rate rises in about five months, consumer activity remains strong in Britain, with house price inflation running at an annual rate of well over 15% in March, according to leading home-loan providers.
At the same time, however, a long-awaited recovery in the manufacturing industry was thrown into doubt earlier this week when output from the sector fell unexpectedly by 0.6% in February from the previous month.
A strengthening of the British pound has also helped to dampen inflationary pressures, economists note.
