It also announced no changes to its programme of pumping newly-created money into the economy – so-called quantitative easing (QE).

In November, the Bank of England said it would inject another £25bn, taking the total planned under QE to £200bn.

The Bank cut interest rates to 0.5% in March in an attempt to boost the recession-hit economy.

Under QE, the Bank of England prints money to buy assets from banks and other companies to stimulate the economy.

The bank is expected to wait until the current QE programme runs out in January before considering whether it should be expanded.

Responding to the decision, some analysts believe interest rates could remain at the current level for the foreseeable future.

The Bank of England recently warned that the recovery would be “slow and protracted” and that it would take months for the full impact of its policies to be felt.

The British Chambers of Commerce have accused the Bank’s Monetary Policy Committee and the government for not going far enough to help recovery.