THE Bank of England was last night urged to keep interest rates on hold following evidence that high street sales had stopped growing for the first time since January 1999.

The Confederation of British Industry's (CBI) monthly distributive trades survey for the three weeks up to October 24, showed that 36 per cent of retailers reporting sales up compared with a year ago - exactly the same percentage which reported a fall.

This gave a zero balance on the CBI's index, compared with a plus 14 per cent score in September and a plus 16 per cent score a year ago.

In addition, the three-month average, which smooths out month-to-month fluctuation in the trades survey, showed growth slowing.

The CBI added that retailers expected sales growth to pick-up in November, but expectations were at their weakest since May 1999.

Alastair Eperon, CBI chairman of the distributive trades panel, said: ''Retail trading conditions are still tough and this standstill in sales highlights the fragility of the situation.

''Competitive pressures remain strong and price cuts continue unabated.

''However, when the month-to-month fluctuations are put aside, sales growth seems to be moderating rather than grinding to a halt.

Mr Eperon called for a hold on interest rates saying: ''This data, coupled with recent CBI surveys on manufacturing and pay, suggests that interest rates are best left on hold for the time being.'