Bank: No interest rate change

Interest rates are to be kept on hold, the Bank of England has announced.

The decision was postponed from its usual first Thursday in the month slot to avoid clashing with polling day.

The Bank's monetary policy committee (MPC) instead announced its latest move at midday on Monday.

Rates will remain at 4.75 per cent for the next month.

At April's meeting seven MPC members voted to keep rates at their present level, while two voted for a quarter point rise.

With City expectations of a rate rise beginning to turn towards thoughts of a possible cut, analysts will be examining the next minutes to see whether there was any discussion of a cut or a reduction in pressure for a rate hike.

TUC head of economics Ian Brinkley said the latest decision was "the sensible course of action".

"The slowdown in consumer spending, weakened house price growth and continuing difficulties for manufacturing all demand that interest rates remain on hold," he said.

Business leader Sir Digby Jones had earlier said firms would also be happy with continued stability.

"With the general election behind us, it is essential that we renew our focus on the economy," the CBI director general said.

"March and April were tough months for business. Manufacturers were hit by the high costs of oil and raw materials.

"Retailers suffered as consumers experienced a fall in disposable incomes with higher fuel and utility bills, and a slowdown in the housing market."