Interest rates were pegged at their record low of 0.5% again today with all the signs pointing to no increase until next year.
With most recent surveys and reports showing little or no improvement in the economy, the Bank of England's Monetary Policy Committee (MPC) was unlikely to raise rates at its regular monthly meeting, which ended today.
Pressure to raise rates to choke off inflation pressures have eased recently with the CPI measure falling to 4.2% in June, although this remains well above the Bank’s 2% target.
The Bank is expected to lower its 1.75% growth forecast for this year when it publishes its next inflation and economic report on August 10.
Both the CBI and the National Institute of Economic and Social Research have downgraded their own forecasts for 2011 to 1.3%.
The Treasury is sticking with its prediction of 1.7% growth but most commentators now believe this is wide of the mark – raising pressure on Chancellor George Osborne to take steps to kick start the flagging economic recovery.
