A unanimous welcome yesterday for the Bank of England's decision to hold its official interest rate unchanged at 5.25 per cent for another month was balanced by widespread - but not universal - fears that this was no more than a reprieve, possibly for a single month.
The CBI was among the organisations suggesting that the no-change decision was the result of a close vote on the Bank's Monetary Policy Committee.
Richard Lambert, director general, commented: "The Bank has weighed up several finely-balanced factors in deciding not to move rates this month.
"There has been some restoration of profit margins following last year's squeeze, yet this is offset by signs of restraint in the annual wage settlement, which suggests underlying inflationary pressures remain under control."
But he qualified this with a warning that "there are signs of renewed vigour in the economy, with continued growth in consumer spending, which means that a rate rise is not out of the question next month".
The EEF takes the view that pressures for another increase in the cost of borrowing have been building up recently.
"The decision to hold rates will be welcomed by manufacturers as it gives the Bank more time to assess whether pay pressures are building up," said Steve Radley, the EEF's chief economist. "However, business also recognises that another rise may be needed to keep inflation in check."
In the West Midlands, Harvey Williams, speaking for the Royal Institute of Chartered Surveyors, also qualified his welcome.
"West Midlands businesses continue to face uncertainty as increasing inflationary pressure brought about by strong consumer spending and an upturn in factory gate prices points towards a further rate rise," he said. "We can only hope that such a decision doesn't come too soon."
Kevin Hawkins, director general of the British Retail Consortium, praised the Bank for waiting.
"By next month, first-quarter figures will give a clearer picture of the impact of recent rate rises," he said.
"Big-ticket retailers, especially those selling home-related goods such as DIY and gardening products, have had a tough start to the year and are hopeful the expected good weather will help an Easter bounce-back. They will be relieved the Bank has not rained on their parade."
Howard Archer, UK and European economist at the consultants Global Insight is among those who regard another increase as all-but inevitable.
He said: "It is pretty short odds that the Bank of England will lift interest rates to 5.5 per cent in May as a precautionary measure aimed at containing medium-term inflation risks.
"However, we believe that 5.5 per cent should mark the peak in interest rates as growth loses a little momentum over the coming months and inflation heads markedly lower helped by favourable base effects and the trimming of utility prices."
Ray Boulger of the independent mortgage adviser John Charcol, is much more open-minded about the short-term prospect.
Another increase, he argued, is "far from a fore-gone conclusion, particularly in the light of the voting at last month's meeting (of the Bank's committee), where there was one vote for a cut and none for an increase".
He explained: "It is notable that it was Prof David Blanchflower who voted for a cut and, as he spends much of his time in the US, he will be much more aware than the other (committee) members of the potential damage to the US economy from the dire problems in their housing market and the risk of contagion to our economy if the situation deteriorates significantly".
Simon Ward, economist at the fund manager New Star, agreed.
"Economic growth appears to have moderated in the first quarter and wage settlements have picked up by less than feared," he said.
"With headline inflation set to return to the two per cent target this summer, there remains little urgency for a further rate increase."
