The Bank of England held its key interest rate at 4.75% today, opting against a further rise after last month's surprise quarter-point increase.
The BoE decision had been widely predicted by economists and came after it had unexpectedly increased borrowing costs in August from 4.5%. However, economists are predicting an increase to 5% in November, citing strong growth and inflation.
The European Central Bank is expected also to raise euro zone interest rates at least once more this year, while the outlook is less certain for US and Japanese borrowing costs.
The bank's monetary policy committee (MPC) gave no explanation for its latest move, as is customary when no change is made to the 'repo' rate - the rate of interest at which the central bank lends to commercial banks.
Markets must wait until September 20 for official comment, when minutes from the latest two-day meeting are released.
Bank of England policymakers had last month voted 6-1 in favour of hiking borrowing costs for the first time in two years to help control UK inflation and dampen the nation's economic growth.
Following August's meeting, official data revealed that Britain's 12-month inflation rate stood at 2.4% in July - the third month in a row it has stood above the government's 2% target.
BoE governor Mervyn King has said there is a 50-50 chance that inflation could rise above 3% by the beginning of 2007 amid soaring energy bills.
The Bank of England is tasked by with keeping annual inflation within a percentage point either side of a 2% target. Britain's economy grew at the fastest rate in two years during the second quarter, compared with the first three months of 2006, recent data showed. Gross domestic product grew by 0.8% during the three months to June 30 compared with the first quarter - the quickest quarterly pace of growth since the second quarter of 2004.
Before August's rate hike, the BoE had kept borrowing costs at 4.5% since August 2005.
