EIGHT members of the Bank of England's interest rate-setting committee voted to keep interest rates on hold this month amid uncertainty over the way the economy was performing.

The Monetary Policy Committee adopted a wait-and-see approach, opting to keep rates at a 48-year low of 3.75 per cent.

Only Christopher Allsopp called for a further 0.25 per cent reduction following February's cut.

The majority of members chose to keep interest rates on hold, saying the slow-down in consumption growth was still tentative, and it was not clear that the fall was faster than already envisaged in the committee's central projection.

Lending to households remained buoyant and recent declines in consumer confidence might reflect uncertainties about the international political situation, which may be resolved in the near-term.

It added that the housing market continued to cool, holding out the possibility of a re-balancing without the sharp adjustment accompanied by consumer retrenchment seen in the past.

The minutes said news about output and demand suggested to some members that prospects were weaker than had been expected, and that the outside risks had diminished, but the falls in the exchange rates and market interest rates would, if sustained, provide a stimulus to activity.

But it added that the outlook for UK demand might be affected by the Budget next month and it would be "sensible" to wait for new information it might contain about the fiscal stance.