UK interest rates were kept at their record low today as the Bank of England admitted the British economic recovery was still too frail to withstand higher borrowing costs.
Just two months ago, commentators were predicting that policymakers would increase the bank's base rate at this month's meeting due to fears over mounting inflationary pressures.
But its monetary policy committee kept rates at 0.5% today after a spate of gloomy economic indicators, including lacklustre figures which showed growth in the UK had been flat for six months.
In addition, the rate of inflation unexpectedly slowed in April to 4% which, while still double the Government's target, eased pressure on the bank to act.
The Bank of England also left the scale of its quantitative easing programme to boost the money supply unchanged at £200 billion sterling.
Today's meeting was the last for committee member Andrew Sentance, who has led calls for a rate rise by voting for a 0.5% increase to 1%.
