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UK interest rates have been held at 4.75% after the Bank of England voted to keep borrowing costs unchanged.
In an unexpected split, three members of the nine-member rate-setting committee wanted to cut rates to 4.5% to boost growth.
The Bank said it thought the economy had performed worse than expected, with no growth at all between October and December.
Rates are still expected to fall gradually next year, with the first cut possibly coming in February.
Commenting on the decision, Bank governor Andrew Bailey said: “We think a gradual approach to future interest rate cuts remains right but with the heightened uncertainty in the economy we can’t commit to when or by how much we will cut rates in the coming year.”
Speaking later to reporters, Mr Bailey said he thought the path for interest rates was “downwards”, but added: “The world is too uncertain.”
“We will come back in February at our next meeting and review it [interest rates] again.”
Figures this week showed that both inflation was higher than the Bank’s target and wages were growing faster than expected.
But the economy is struggling. Last month, the Bank forecast growth of 0.3% in the final three months of the year, but it now expects 0%.
The revisions will be a blow to Labour which has made boos
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