Interest rates hold at 5%
The Bank of England has left interest rates on hold at 5%, in its latest Monetary Policy Committee meeting.
The decision was widely expected by analysts and comes as rumours hint that July's inflation figures, to be published next week, could be over 4%.
Richard Lambert, Director-General of the Confederation of British Industry, said of the decision:
"The latest data show the slowdown in UK economic activity gathering pace, and business and consumer confidence falling further. However, with inflation heading higher in the next couple of months, the Bank is right to leave rates on hold for the time being."
