The Bank of England held interest rates steady at 4.75 per cent for the seventh month running today.
Financial markets were relieved by the decision was the business lobby. Many economists expect the central bank to raise borrowing costs again by the middle of the year.
"British business welcomes today's MPC decision to leave interest rates unchanged. It was clearly the correct decision," said David Frost, director general at the British Chambers of Commerce.
"In spite of the growing clamour for early interest rate increases, there are no powerful arguments for an immediate change in rates," he said.
Although the British economy is growing strongly, there are question marks over both the pace of consumer spending and the housing market. Earlier this month Boots Group, Britain's top health and beauty retailer, warned of weaker full-year profits than expected as sluggish spending hit its main chemists chain.
The global economy, particularly Germany's, is also looking weaker and oil prices have hit record highs this week. Interest rates were raised by a total of 1.25 percentage points between November 2003 and last August.
Many analysts expect the BoE to increase rates in the next few months, but an expected general election on May 5th complicates matters as a rise just before could hit voters' pockets just as campaigning starts.