The Bank of England Thursday left interest rates unchanged at 5 per cent, it said.
The decision to hold rates at the same level for the fifth month in succession came amid growing fears over inflation and growth.
Inflation is expected to reach 5 per cent this year, while forecasts this week predicted that Britain's economy was heading for recession.

The Singapore Exchange Limited (SGX) Tuesday said its derivatives and Exchange Traded Funds (ETF) markets set new trading records last year with volume surging to
When the Spirit rover landed on Mars five years ago, no one expected it or its sister rover Opportunity to make it to their first birthdays, let alone their fifth.
The San Antonio Spurs turned up their trademark defense down the stretch to turn back another opponent.
Popular US talk show host Oprah Winfrey, 54, has vowed to battle her recent weight gain, blaming it on "food abuse."
After the Taipei Zoo received two giant pandas from China, another Taiwan zoo said Friday it is seeking to receive a pair of pandas from China.