The Bank of England has, as widely expected, kept the cost of borrowing the same for another few weeks.

But many analysts expect it to bring in another hike as early as next month.

The bank's Monetary Policy Committee took the decision to keep the UK base rate at 4.5% because of recent evidence that consumer spending and the housing market have been cooling.

This follows quarter point rises in both May and June which had the effect of slowing high street spending and cutting the demand for homes.

Jeremy Leaf of the Royal Institution of Chartered Surveyors told Sky News: "The housing market has taken the medicine and it's working.

"Prices are still rising, but more slowly."

He added that the recent warning by BoE Governor Mervyn King that house prices were due for a fall had also had an effect.

However, it is thought that the bank may resume its tough stance in August and hike the base rate by another 0.25% to 4.75%.

Simon Rubinsohn of stockbroker Gerrard said: "Recent comments by Mervyn King make it clear that monetary policy is still likely to be tightened further before too much longer."

Eventually, it is thought, rates will creep up to reach a peak of around 5.25% next year.