The Bank of England has delayed tackling rising inflation and kept interest rates on hold at 5%. Food and energy price rises had put pressure on the Bank's Monetary Policy Committee to raise rates to slow consumer spending, but it voted to keep rates steady for a fourth consecutive month. Steep rises in energy bills, such as British Gas's record hike last week, have added to inflationary concerns and calls for the Bank to raise rates, despite the risk of a recession also looming large. Economists had highlighted the risk of a rate rise, pointing out that one MPC member had called for a hike at July's meeting - sending a clear signal on the Bank's determination to control inflation. However, the real economy is also looking decidedly grim, with news earlier this week that activity in the manufacturing sector fell at its fastest pace for nearly a decade during July