Bank holds rates at 5%
The Bank of England has held interest rates at 5% for a fourth month in a row as concerns over inflation offset fears of a growing economic slowdown.
The decision to freeze borrowing costs had been expected as inflation remains well above its 2% target at 3.8% and is set to rise further in coming months.
It comes as the International Monetary Fund cut its UK growth outlook and said there is little scope for rate cuts.