Bank of England holds Base Rate at 0.5%

The base rate has remained unchanged since it was halved to 0.5% in March 2009.

Ben Thompson, director of mortgages at Legal & General, said: "It's no change again, but perhaps not quite as clear-cut as in previous months. We think there may well have been a three-way split in opinion at today's MPC meeting and it will be interesting to see the minutes when they are published.

"More bullish elements within the committee have been hinting that interest rate rises are to come later this year and this is looking increasingly likely. However, the new challenge now facing us is how to ensure that the fragile recovery which we are experiencing is not killed off before it has gained a proper foothold. With consumer confidence on the up, house prices recovering and signs of life in the mortgage market, we don't want a relapse and a continued reliance on quantitative easing life support."