The Bank of England (BoE) today held interest rates at a record low as concerns about sluggish growth outweigh worries over high inflation.
Economists predicted rates would stay at 0.5% for the 27th month in a row.
The weak economy has led analysts to put back the likely date for the next rate rise to November, despite inflation hitting a two-and-a-half year high of 4.5%.
Data released since the Bank's last MPC meeting confirmed that UK GDP grew just 0.5% in the first three months of the year after falling a similar amount at the end of 2010.
Business leaders welcomed the bank's stance.
David Kern, chief economist at the British Chambers of Commerce (BCC), said: "While increased utility prices and high inflation puts the MPC in an uncomfortable situation, countering this with a rise in interest rates would be a mistake.
"As long as wage increases remain subdued, the MPC should hold its nerve for the time being."
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