The Bank of England's Monetary Policy Committee (MPC) voted strongly in favour of keeping interest rates at 5% earlier this month, according to minutes from the meeting.
Eight of the nine MPC members voted to keep rates on hold in June to keep spiralling inflation under control.
David Blanchflower, who has often supported cutting rates in the past, voted for a 0.25% cut in interest rates.
Major support for keeping rates on hold among the MPC may indicate that further rate cuts are unlikely in 2008, particularly with inflation now at its highest level in over 11 years, at 3.3%.
Ian Kernohan, economist at Royal London Asset Management says the MPC is unlikely to raise rates unless absolutely necessary as it could risk a recession.
"Mr King's letter together with the Minutes suggest that the MPC is loathe to precipitate what they would view as an unnecessary recession by raising interest rates at this stage," he says.
"The economy needs to slow down and the credit squeeze is doing the heavy lifting."
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