The Bank of England has today kept interest rates on hold at 5% for a fifth month. But with the economy possibly heading for recession – expectations are rising that the cost of borrowing will be cut by the end of the year. Economic growth ground to a halt in the second quarter of this year, the worst performance since the early 1990s. Inflation is more than double the Bank's target of 2%. Ian McCafferty, CBI chief economic adviser, said the Bank's Monetary Policy Committee decision showed it is still worried about inflation, which is likely to rise to around 5% in coming months. "But as the autumn unfolds, the chances of a rate cut will increase, as the slowdown improves the inflation outlook for next year," he said. TUC Head of Economics and Social Affairs Adam Lent warned that inflation was no longer the main threat to the economy. "This is a depressing decision," he said. "A cut today would have offered hope to all those who fear for their jobs and homes, and helped cut through the economic pessimism that is now doing as much damage as the credit crunch and energy prices." The OECD earlier this week forecast that the UK economy will contract in the current quarter and the next - meeting the official definition of a recession. Chancellor Alistair Darling said last weekend that conditions facing the UK and other countries were "arguably the worst in 60 years".