The Bank of England held interest rates in November due to lingering inflation concerns, it has been revealed.

The Monetary Policy Committee (MPC) voted in favour of holding rates at 5.75% amid concerns over rising oil and food costs.

Minutes from the MPC's meeting show members were afraid of cutting rates too soon, and that it would be some time before they could effectively assess the extent of an economic slowdown.

Although business activity is slowing and signs are pointing to a dip in the housing market, the MPC still said it did not want to cut rates too early and increase fears over inflation.

Some analysts had predicted cuts could begin as early as next month, after last week's inflation report signalled interest rates would drop at least twice next year.

But the Bank's cautious approach has made this appear less likely, with the MPC voicing concerns that policy tightening "could prove costly" if decisions are made too quickly.

"There [are] risks attached to a pre-emptive cut if the slowdown in activity was more muted, and the rise in inflation in the early part of the forecast period was sharper than expected," the minutes stated.

Capital Economics' Jonathan Loynes said: "While the committee is clearly moving towards cutting rates, it is doing so pretty slowly.

"The majority remain concerned about the high level of inflation expectations and are not yet convinced that the economy is slowing more sharply than is needed to hit the inflation target two years ahead."

And ING economist James Knightley added that the Bank would want to be sure of the true effects cuts could have on the economy before making decisions.

"We suspect that the Bank will want firmer evidence that the economy is slowing," he said.

"Moreover, with inflation being pushed higher by food and energy costs - possibly back up to 2.5% in the next couple of months - the uncertainty factor may keep the MPC on hold for a couple of months."

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