Wednesday. According to the Bank of England's Monetary Policy Committee's July minutes, MPC’s members voted unanimously against a third successive rate rise. The nine-member MPC voted to keep the Bank of England's main rate at 4.5 per cent, partly because of the possible shock another rise would cause, partly because there were tentative signals that the house market was slowing after inflation in May proved to be below target. Minutes of the meeting showed the MPC was waiting for August's inflation report to review the rate situation. In May and June, the MPC raised rates by a quarter points in each month.

    The MPC thought rates would have to go up because there was "little, if any, spare capacity" in the economy and the number of people in employment was reaching record levels. Since people had now got used to the idea of rising interest rates, a careful approach to rate rises was no more necessary.

The economic growth in the second quarter is expected to be stronger than the 0.7 per cent in the first three months. Official figures published on Friday shows growth accelerating to about 1 per cent.

    The MPC noted that consumer spending and house price growth showed signs of slowing but appeared reluctant to put much weight on this. Meanwhile, the labor market continued to tighten gradually and there was some evidence of pressures building down the supply chain.

    However, economists reckon July's reprieve will be brief, with another quarter-point rate hike in August a virtual certainty.