UK monetary policy chiefs have voted to leave the cost of borrowing at 4.75 per cent, the sixth consecutive monthly freeze in interest rates.
The decision came after a mixed bag of economic news, which suggest that shops are being held back by edgy consumer confidence, but that manufacturers have registered some growth in the last few months.
Despite high employment levels, inflation remains low. In addition UK house prices seem to be on their way down and the UK's trade deficit has narrowed.
Analysts and economists believe the Monetary Policy Committee (MPC) want to wait for a clearer picture before adjusting interest rates either way, but speculation is growing that the benchmark cost of borrowing has topped out in the current economic cycle.
Manufacturers welcomed news of the freeze, arguing that stability was the best thing for the industry. However, on Thursday a business group claimed that factories would shed 26,000 jobs in the first quarter of 2005 - an argument for lower rates.
Steve Radley at the Engineering Employers Federation said: "Currently the economic data suggests that the Bank should continue to sit on its hands. Unless the outlook changes significantly, business will welcome an extended period of stability in interest rates."
Minutes of the meeting - which reveal the MPC's thinking behind its decision - will be published at on February 23.
