The Bank of England has kept interest rates on hold at 5.25% as fears over inflation prevented another cut.

Rises in the price of food and fuel - along with a survey that revealed the price of British-made products is increasing - are behind the decision of the monetary policy committee not to cut rates for the third time in four months.

Analysts expect further interest rate cuts in the next few months as the Bank attempts to stave off recession but could be prevented from doing so if inflation rises.

Figures released in February revealed that the consumer prices index had risen from 2.1% in December to 2.2% in January, with the recent hike in the price of fuel the main factor.