The Bank of England has once again kept the Bank Rate at 0.5%.

The central bank’s monetary Policy Committee (MPC) also voted to keep quantitative easing at £375 billion.

“A rate cut was always highly unlikely, coming just one month after the increase in QE to £375 billionn and the launch of the Funding for Lending Scheme on 1 August,” said Brian Murphy, head of lending at leading broker Mortgage Advice Bureau. “The MPC needs to see what impact these measures have before taking any major action.

“Slashing the base rate would have benefits, particularly for borrowers who have mortgages linked to it, but it would also hurt those lenders who have been supporting the market with competitive products.”

Murphy added: “But with GDP figures for the second quarter showing the economy shrank by -0.7% and the news of shock slump in the manufacturing sector last month, cutting the base rate to 0.25% or lower remains a definite option.”