Bank of England holds base rate at 0.5%

The Bank of England has maintained interest rates at 0.5% for the thirteenth consecutive month.

This means the period of rate-changing inactivity now eclipses the two year-long holds in the middle of the last decade and makes it the longest period without an increase or decrease since the 4% freeze between November 2001 and February 2003.

The Bank also decided not to pump any more money into the UK economy under its policy of quantitative easing.

Simon Gammon, head of Knight Frank Finance, said: "The decision to keep the base rate on hold at a record low of 0.5% comes as no surprise, especially with a General Election due in a month's time.

"Although some countries around the world continue to recover from the recession, such as Australia who increased its base rate again this week, the UK economy simply isn't ready. Add a General Election into the mix and it is extremely unlikely that rates would be changed so close to polling day. Neither the economy, nor the country, could take it.

"Rates are unlikely to change for the foreseeable future and the economic uncertainty brought about by a hung parliament - which many are starting to believe could be a possible outcome of the election - could push rate hikes even further into the distance."