Against a background of falling property prices and low consumer confidence, the Monetary Policy Committee announced on 4 September 2008 that the UK base rate would again be held at 5.00%.
A rate reduction was rejected because inflation is already well above the Bank of England's target and is widely expected to increase further.
With UK house prices falling at their fastest rate for 18 years and with mortgage approvals at their lowest levels since records began, this decision will do nothing to revive the property market, which would need a heavy rate reduction to make any significant impact.
Most commentators expect the Bank of England to start a series of rate cuts later in 2008 and throughout the first quarter of 2009.