The Bank of England has left its key lending rate unchanged at a 38-year low of four per cent as it waits for clear evidence the economy is back on the road to recovery after last year's downturn.
The decision to hold fire on rates for the eighth month in a row had been widely forecast by economists, especially given recent stock market turbulence caused by accounting worries.
But the Bank's Monetary Policy Committee is expected to act sooner rather than later to rein in surging house prices which have encouraged homeowners to build up record levels of debt.
Some economists predict the MPC will start reversing last year's emergency rate cuts, designed to shelter the economy from the global downturn, next month. However, others see them on hold until the end of the year.