The Bank of England has held interest rates at four per cent. The freeze in the cost of borrowing is in line with analysts' expectations, but will disappoint the ailing manufacturing sector.
UK interest rates are now at their lowest level since 1964, having dropped from six per cent since January, with half the cuts coming since September 11th.
Market-watchers say the strength of the UK economy relative to other European nations made a further cut a long shot.
UK consumer confidence is still holding up, despite a decline in retail sales in October and signs of a slowdown in the housing market.
However, economists are expecting the Bank's monetary policy committee to announce a reduction early next year.
Ms Hilary Cook, of Barclays Stockbrokers, said: "I think that after the last half-percentage point cut last month, we didn't really expect a reduction this time.
"Economic data released this week, particularly relating to the housing market, pretty much confirmed that a cut wasn't on the cards."
Mr Ian Fletcher, chief economist at the British Chambers of Commerce, says: "Business will today welcome the MPC's restraint in keeping rates on hold. Output growth remains strong, despite the downturn abroad, and the consumer side of the economy appears to be bearing up well.
"There is no reason why we should not avoid recession with appropriate support, and it is much better that the Bank pauses and takes stock of the economy."
PA