The Bank of England (BOE) kept interest rates at 4.5% today, in line with most economists' expectations that the bank will wait until next month to hike up interest rates in order to pre-empt rising inflation.
The BOE issued no statement explaining its decision after the Monetary Policy Committee's monthly rate-setting meeting.
Economists believe the bank will raise rates a quarter percentage point in August to 4.75%, in line with its policy of making gradual increases as economic growth picks up. Since November it has raised rates from 3.5%.
Evidence has grown in the past month that the economy is growing briskly, yet the BoE's decision follows signs of cooling in some sectors.
The consumer confidence index fell in June, first quarter household consumption growth was revised down last week and surveys have said house price inflation is slowing.
Meanwhile, annual inflation of 1.5% in May is well below the Bank's 2% target, although this was the highest rate in a year.
