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Mortgage interest rates in the UK  have been held at 5% by the Bank of England’s Monetary Policy Committee (MPC).

The move was expected by the city , many analysts are  now predicting that mortgage rates will be reduced to 4.75% in June.

The MPC’s decision came despite a flurry of worries about the state of the UK economy amid a global slowdown.

There are still major worries over rising fuel and food prices and how rto control inflation. 

“The latest data shows the economy is slowing, albeit only gradually, and at the same time inflationary pressures continue to mount,” said Ian McCafferty, chief economic adviser to the CBI business group.

“The Bank faced a difficult decision, but it is no surprise that rates were kept on hold this month.”

The EEF, the body wich controls British Manufacturing said that the decision to hold rates was only delay the inevitable cut.

“The economy has been through a series of shocks since the credit crisis hit last summer and the Bank has been right so far in responding with a measured approach on rates,” said the EEF’s chief economist, Steve Radley.