Interest rates held at 0.5 per cent

The decision will come as a surprise to many in the city as the Bank of England Governor Mark Carney had previously indicated rates would be cut this summer.

The rate will probably not stay at 0.5 per cent for long however, with minutes indicating that further stimulus action was likely to be taken next month.

The Monetary Policy Committee voted 8-1 to hold the rate at 0.5 per cent where it has been for seven years.