The Bank of England has frozen interest rates at 4 per cent.
Today's decision by the Bank's monetary policy committee sees rates held at their lowest level for 40 years.
A hold on the cost of borrowing was expected by analysts, who point to signs that the US economy is beginning to revive. Buoyant consumer spending is among the factors which weighed against a further cut.
But Bank governor Sir Edward George has warned interest rates will be raised if the spending boom fails to slow in the coming months because of concerns about mounting consumer debt.
The hold is bad news for manufacturers, who have been pressing for a cut to ease the impact of falling orders and lay-offs.
Mr Ian Fletcher, chief economist at the British Chambers of Commerce, said: "With so much conflicting data and views on the economy, it is understandable members of the MPC should wish to sit on their hands".
He added: "UK manufacturing is suffering from very weak exports and, for its sake, the worst thing the MPC could do now is to make a policy mistake by jumping in one direction too soon".
PA