The Bank of England appears almost certain to leave interest rates on hold at 4.75 per cent this week for the second month in a row amid increasing evidence pointing to the economy slowing down.

All 41 analysts polled by Reuters last week predicted no change in borrowing costs will come out of the Monetary Policy Committee's meeting which ends at 1100 GMT tomorrow.

Indeed, while most still expected another hike, probably in November, a growing number said that rates have already peaked.

Since then, surveys have shown growth in manufacturing and services slowing to its weakest pace in more than a year, adding to other data suggesting five interest rate hikes since November have cooled the economy and housing market down.

"I think all this is going to show that the Bank of England can afford to be far less forceful in raising interest rates than we thought perhaps a few weeks ago," said Peter Dixon, economist at Commerzbank.

With no-change this month looking like a done deal, the question for most economists is whether the BoE will raise rates again this year. Short sterling markets are pricing in a less than 50 per cent chance of another move before January.

Expectations that 4.75 per cent could be the peak of this rate cycle were fuelled last week after MPC member Kate Barker said the central bank may be closer to a point where it would no longer be signalling more tightening.

She added that rates might already be at the so-called neutral level - where policy is neither contractionary nor expansionary.

Fellow MPC member Steve Nickell also pointed out last month that August consumer and housing data had been on the weak side and if that continued then rates might not have to rise that much more.

But as always, the next move will depend on the economic data. Certainly, some MPC members considered arguments for raising rates last month before joining the rest of the committee in voting for no-change.

While inflation remains low, soaring energy and commodity costs are increasing price pressures in the supply chain and sterling's recent weakness also poses another upside risk.

Against that, the MPC appears more confident that the slowdown seen in house prices is genuine and represents a turn in the market. Surveys have also pointed to a sharp deceleration in retail sales growth.