The Bank of England’s monetary policy committee left interest rates unchanged at 5 per cent for a fourth consecutive month on Thursday, after evidence of a weakening economy left it little scope to toughen its stance against rising inflation.

The decision came as a relief to industry groups that had feared the Bank might raise rates to strengthen its inflation-fighting credentials. But market reaction was muted, as analysts had unanimously predicted unchanged rates, with most expecting no movement before the end of the year.