The Bank of England left its key interest rate unchanged at 4.75 percent Thursday.
The decision was widely expected, following data which showed the surge in housing prices easing.
The base rate is what the Bank of England charges on loans to commercial lenders. Commercial banks and lenders use it as a guideline for their loans to businesses and individuals.
The bank's Monetary Policy Committee had raised rates five times since November from a low of 3.5 percent because of fears that inflation was accelerating.
However, a quarterly report last month showed that British inflation was likely to meet the 2 percent target over the next two years.
British banks approved 20 percent fewer mortgages in July, and one major lender, The Halifax, said house prices fell by 0.6 percent last month — the first decline for two years.
