The Monetary Policy Committee (MPC), kept rates unchanged before going off on its August
holidays, because it is generally thought that the house price boom has not come to an end.
It was believed that due to the unusual circumstances in June, such as the World Cup and the
Jubilee Celebrations, the weak retail sales figures could not totally be trusted.
There had been some unexpectedly high and low figures, and the discrepancy between
reported numbers and expectations has changed general perceptions about the economic
However, if there are a couple more months of weak retail data, the case could build up for a