What the Bank has to weigh up next week

By Christina Fincher

LONDON (Reuters) - The Bank of England is expected to leave interest rates on hold for the fifth month running next week as it balances the threat of recession against that of persistently high inflation.

All 67 analysts polled by Reuters this week predicted the Bank's Monetary Policy Committee would leave borrowing costs pegged at 5 percent at the end of its two-day meeting on Thursday.

Policymakers were split three ways last month. Timonthy Besley voted to raise rates, David Blanchflower voted to cut them and the remaining seven committee members chose to leave them on hold.

Here are some of the main factors the Bank will be looking at.

INFLATION

The consumer price inflation rate hit 4.4 percent in July, more than double the central banks' 2 percent target. The Bank's quarterly inflation report projected inflation would peak at around 5 percent later this year but fall back sharply in 2009.

Oil prices have fallen by around $30 a barrel from last month's all-time peak above $147, but consumers have yet to feel the full impact of hefty price hikes announced by utility providers.

GROWTH