HOMEOWNERS hoping for a back-to-back cut in borrowing costs were left frustrated today after the Bank of England kept interest rates at 5 per cent.

HOMEOWNERS hoping for a back-to-back cut in borrowing costs were left frustrated today after the Bank of England kept interest rates at 5 per cent.

Members of the Bank's Monetary Policy Committee (MPC) had been under pressure to make a fourth cut in six months following a flurry of poor economic news.

City economists said they expected the next cut to be made next month, with policymakers reluctant to do so today because of fears that oil and food prices will force inflation above 3pc.