bank opts to leave rates on hold the bank of england has left interest rates on hold at 4.75% for a sixth month in a row.  the bank s monetary policy committee (mpc) decided to take no action amid mixed signals from the economy. but some economists predict a further rise in the cost of borrowing will come later this year. interest rates rose five times between november 2003 and august 2004 as soaring house prices and buoyant consumer data sparked inflation fears. bank of england governor mervyn king has recently warned against placing too much weight on one month s economic data  suggesting the mpc is waiting for a clearer picture to emerge. economists see next week s inflation report from the mpc as key in assessing whether a further interest rate rise is necessary to keep the economy in check.  slower consumer spending and a quieter housing market are likely to have convinced the mpc that rates should be left unchanged in recent months. inflation  however  has been rising faster than expected  hitting an annual rate of 1.6% in december - its highest level in six months. data on wednesday also showed manufacturing output rose at its fastest rate since may last month  reinforcing a view that economic growth was stronger than forecasts.  and recent house surveys from the halifax and nationwide have indicated prices are still rising  albeit at a slower pace than in recent years. philip shaw  chief economist at investec securities  said he believed rates would remain at 4.75% for the rest of the year although strong economic data could lead to a further hike.  the economic landscape has changed quite considerably over the last couple of months    he said.  growth appears stronger and the mpc may become more concerned about inflation trends.  howard archer  economist at global insight said the mpc  may well consider that the balance of risks to the growth and inflation outlook have moved from the downside to the upside .  business groups welcomed the mpc s widely-expected move to leave rates on hold and cautioned against further rises. the british chambers of commerce (bcc) said it was  concerned by the clamour in some quarters  for early interest rate increases.  we believe that these demands should be firmly resisted   said david frost  bcc director general.  manufacturing still faces extremely serious problems and is performing poorly  in spite of the recent revised figures.  ian mccafferty  chief economist at the cbi  said the mpc faced an  interesting  challenge.  consumers appear to have pulled in their horns over the holiday period  and exporters are struggling with the strength of sterling   he said.  however  the broader economy continues to show healthy growth  and the tight labour market and buoyant commodity prices are nudging inflation higher.