The Bank of England has held UK interest rates at 5%, as expected. But most economists are still predicting a cut next month to boost the British economy in the face of a global credit crunch.
The Bank of England had last month cut rates by a quarter-point - the third cut since December. Few had expected a cut this month as inflation is some way above the bank's target and will probably go higher.
But falling house prices, crumbling consumer confidence and other signs pointing to a sharp economic slowdown are expected to force the BoE's hand in June.
Attention will now turn to the BoE's new inflation forecasts to be published next week for a clearer idea on where policy is heading.
