The Bank of England’s Monetary Policy Committee (MPC) has voted to hold the Bank Rate at 0.5% and keep quantitative easing at its existing level.

Barry Naisbitt, chief economist at Santander UK, said: “The Monetary Policy Committee’s (MPC) decision to hold Bank Rate today was, once again, not a surprise. Although last month’s decision to hold rates continued the run of split votes, with two MPC members voting for an increase in rates, the incoming economic news over the past month has not been strong enough to support a change in view for the majority of MPC members.

“The latest indicators of economic activity are continuing to show steady growth and the unemployment rate has now fallen to 6%. Aided by falling oil prices, inflation is now at 1.3% and the Bank of England expects it to fall in the coming months.

“The low inflation backdrop should provide scope for the MPC to continue to hold rates at their current level for a while longer.”