This was an expected decision, as economic pressures such as the slowing housing market and rising oil prices are currently pushing inflation higher and a cut in rates would certainly increase that pressure.

"We are not surprised by the MPC's decision and it was almost universally expected," stated David Kern, Economic Adviser for the British Chambers of Commerce (BCC).

"With CPI annual inflation likely to increase in the next few months, and with the Governor expected to write at least two additional letters to the Chancellor this year, the MPC must strive to maintain credibility. Our members are very concerned about inflation and we have not called for an immediate interest rate cut."

Other business groups and economic experts have commented on the difficult decisions faced by the MPC in maintaining a balance between growth and inflation.

Chief economist at the Institute of Directors (IoD), Graeme Leach stated "If the MPC reduces interest rates, it risks losing control of inflation."

"Conversely, if it increases interest rates it risks losing control of growth and could trigger a recession."