THE Bank of England disappointed struggling high street retailers as it kept interest rates on hold at 4.5 per cent for the third month running.

The no change decision was widely predicted by economists after a cut from 4.75 per cent in August appeared to prop up the housing market.

Fears over the risks of higher inflation were thought to be behind yesterday's vote by the Monetary Policy Committee (MPC) and all eyes will now be on the Bank's quarterly Inflation Report which is due to be published next week.

Inflation rose to an eight-year high of 2.5% in September due to high oil prices, well above its 2% target.