The Bank of England's Monetary Policy Committee has voted to hold interest rates at 5%.

The doves on the committee led by David Blanchflower appear to have failed to persuade the group that growth is weakening at a sufficient rate to warrant a cut despite mounting inflationary pressures.

It is the fourth consecutive month that the Bank has held rates steady, following a rate cutting period ending in April.

As in previous months the news will come as a disappointment to businesses and homeowners alike who would have hoped for a cut in interest rates to offset other rising costs.