The Bank of England left interest rates at 4.75 per cent for the 10th month running today as evidence builds that the economy is slowing sharply.
All 45 economists surveyed by Reuters News Agency last week had predicted the Monetary Policy Committee's decision at its monthly meeting.
But a growing number expect the next move to be down, perhaps as soon as August as there seems to be no end to gloomy news from the retail sector.
A survey this week showed retail sales fell in May on a year earlier, and companies have lined up to complain about tough trading conditions as consumers feel pinched by five interest rate rises between November 2003 and August last year.
Another fall in house prices in May was further evidence that a property market slowdown, which began in earnest late last year, is persisting and subduing spending, particularly on interest-rate sensitive big items such as furniture.
The MPC has singled out weaker-than-expected household spending as the greatest risk to an otherwise neutral policy outlook, so its decision to hold rates was no surprise.
Britain's manufacturing sector contracted in the first three months of this year, dragging on overall economic growth.
Data released shortly before the MPC's decision showed factory output rose 0.9 per cent in April, more than expected but not enough to reverse March's sharp 1.6 per cent fall.