The Bank of England left its key lending rate at 4.75% today for the second month in a row, as expected. Recent data suggests that five interest rate hikes since November have slowed the economy down.
Analysts are now increasingly wondering whether or not the BoE will raise rates again at all this year, particularly after much weaker than expected manufacturing output figures suggested overall growth slowed sharply in the third quarter.
Short sterling interest rate futures are currently pricing in only a one in three chance of official rates rising to 5% by the year-end.
All 41 analysts polled by Reuters last week had predicted no change this month, but most still expected at least one more hike, probably in November when the central bank prepares its quarterly forecasts for the economy.
But a slew of weaker data since then has made a number of analysts either push back their forecasts on the timing of the next increase or question whether 4.75% could turn out to be the peak of the rate cycle.
The BoE offered no statement to accompany its decision but will publish minutes of its meeting on October 20.
British interest rates remain well above levels in the US and euro zone, which are 1.75% and 2% respectively.
