The Bank of England's Monetary Policy Committee (MPC) was unanimous in voting to keep interest rates steady at 4.5 per cent earlier this month, but analysts said another quarter-point rate hike in August still seemed likely.
Minutes of the July 7th and 8th meeting showed that the MPC had thought there was little significant economic news since it had raised rates for the second straight month in June and judged that a third hike would have led to an unwarranted re-evaluation of its strategy.
Still, while acknowledging some tentative signs of a slowdown in the housing market, it noted that house prices were still above the level forecast in May and that overall the economy seemed strong.
The Committee considered possible arguments for a rise of 25 basis points in the repo rate, noting that the repo was likely to need to rise again but concluded that the case for keeping rates unchanged was "more persuasive" and there was no argument for a third successive rise.
"The August Inflation Report would provide an opportunity to evaluate the news since May more fully in the context of producing a new forecast and to consider further some key economic issues," the minutes said.
Analysts said that a rate hike in August now seemed virtually certain. "A 25 basis points hike in August is a done deal," said Mr Lorenzo Codogno, economist at Bank of America.
The MPC decision to keep rates pegged had been widely anticipated after it had raised rates by a quarter-point for two straight months in May and June.
The MPC has raised borrowing costs by a total of a percentage point since last November in a bid to cool roaring house prices and consumer demand.