bank holds interest rate at 4.75% the bank of england has left interest rates on hold again at 4.75%  in a widely-predicted move.  rates went up five times from november 2003 - as the bank sought to cool the housing market and consumer debt - but have remained unchanged since august. recent data has indicated a slowdown in manufacturing and consumer spending  as well as in mortgage approvals. and retail sales disappointed over christmas  with analysts putting the drop down to less consumer confidence.  rising interest rates and the accompanying slowdown in the housing market have knocked consumers  optimism  causing a sharp fall in demand for expensive goods  according to a report earlier this week from the british retail consortium. the brc said britain s retailers had endured their worst christmas in a decade.   today s no change decision is correct   said david frost  director general of the british chambers of commerce (bcc).  but  if there are clear signs that the economy slows  the mpc should be ready to take quick corrective action and cut rates.  dismal reports from the retail trade about christmas sales are worrying  if they indicate a more general weakening in consumer spending.   mr frost added:  the housing market outlook remains highly uncertain.  it is widely accepted that  if house prices start falling more sharply  the risks facing the economy will worsen considerably.  cbi chief economist ian mccafferty said the economy had  slowed in recent months in response to rate rises  but that it was difficult to gauge from the christmas period the likely pace of activity through the summer.  the bank is having to juggle the emergence of inflationary pressures  driven by a tight labour market and buoyant commodity prices  against the risk of an over-abrupt slowdown in consumer activity   he said.  interest rates are likely to remain on hold for some time.   on thursday there was more gloomy news on the manufacturing front  as the office for national (ons) statistics revealed british manufacturing output unexpectedly fell in november - for the fifth month in the past six. the ons said manufacturing output dropped 0.1% in november  matching a similar unrevised fall in october and confounding economists  expectations of a 0.3% rise. manufacturers  organisation  the eef  said it expected the hold in interest rates to continue in the near future. it also said there was evidence that manufacturers  confidence may be waning as the outlook for the world economy becomes more uncertain.   so far the evidence suggests that last year s rate increases have helped to rebalance the economy without damaging the recovery in manufacturing   said eef chief economist  steve radley.  however  should the business outlook start to deteriorate  the bank should stand ready to cut rates.  some economists have predicted rates will drop later in the year  although others feel the bank may still think there is a need for a rise to 5% before that happens. the bank remains concerned about the long-term risks posed by personal debt - which is rising at 15% a year - if economic conditions worsen.