The Bank of England left interest rates unchanged today, following a week of intense speculation over whether it would cut them for a second month running to shore up economic growth.
The Bank held the main rate at 5.5%, having lowered it a quarter percentage point in December.
Most economists had predicted a no-change verdict but money markets, spooked by signs of a consumer retrenchment, were pricing in a 60% chance of a cut.
Still, the pause is likely to be short-lived and the Bank is widely tipped to cut rates again in February, when it publishes new growth and inflation forecasts.
The impact of a slowing housing market and falling consumer confidence is already being felt by retailers and the international outlook has also darkened.
Many investors expect the US Federal Reserve to cut rates by 50 basis points this month to head off the risk of recession.
