The committee also voted to maintain the size of the quantitative easing programme at £375bn. This stimulus programme is a bond-buying programme financed by the issuance of central bank reserves.
It was not expected that the Bank of England would do anything but leave the interest rates and bond-buying at their current levels, although recent signs are pointing to a continued recovery on the UK economy.
At present most economists do not expect the Bank of England to change interest rates at least until the first half of next year and the recent fall in inflation rate has reduced the pressure on the Bank to increase rates sooner rather than later.
Investec chief economist Philip Shaw said:
“For now, with the economy growing respectably but not roaring away, we see it likelier than not that the MPC will avoid tightening policy this year, especially with inflation expected to remain below target over the medium term.”