The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 5-3 to maintain Bank Rate at 0.25%.

This is greatest split in opinion on a Bank Rate decision by the MPC since 2007.

The MPC voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

Martin Palmer, head of corporate funds propositions at Zurich, said: “With the Fed having raised US interest rates for the second time this year earlier in the week, today’s Bank of England announcement shows the UK economy remains in a very different space.

“For consumers, the sustained period of record low interest rates has been challenging, with little return from storing away hard-earned cash whilst seeing it eroded by inflation. The dual impact has left people with less in their pockets at the end of the month, eroding their spending power and serving as a reminder to be smart with money and aware of different savings strategies so it’s not all left in one basket.

“As the savings environment remains difficult with rates on products such as bank accounts and cash ISAs not reaching above 1%, savers must look at alternative savings products such as a stocks and shares ISA to avoid their cash reducing in real terms.”