Bounty

Interest rates are expected to be kept on hold for the 18th month in a row amid growing pessimism over the economy.

The Bank of England is predicted to hold the bank base rate at 0.5% when it announces yet another decision on Thursday.

The Bank's Monetary Policy Committee (MPC) has so far prioritised supporting the economy over a bid to rein in stubbornly high inflation, and is expected to hold the base rate at the same level for many months to come.

Economists predict the threat of a stalling economic recovery will continue to outstrip concerns over prices.

Howard Archer, chief UK and European economist at IHS Global Insight, said the MPC will vote to protect "what is still overall muted recovery from very deep recession".

He added: "Although UK GDP spiked up by 1.2% in the second quarter, the Bank is very well aware that this substantially exaggerates the strength of the economy and that the recovery is still at risk from serious headwinds."

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