The base rate has been at this historic low since it was first slashed to 0.5 per cent in March.
The Bank has so far purchased £105bn of assets as part of its £125bn quantitative easing programme.
The Monetary Policy Committee will review the scale of the programme again at its August meeting, alongside its latest inflation projections.It has the ability to call upon a further £25bn after the alloted £125bn has been spent at the end of this month, but as yet there is no indication whether the Bank will call on this.
John Charcol senior technical manager Ray Boulger says the hold in the base rate and the subsequent ‘wait and see’ policy over quantitative easing will do little to ease problems in the mortgage market.
He says: “Over the last month spreads on five-year fixed rates over the cost of funds have increased by about 1 per cent. This is not a sign of a healthy market.
“Activity in the property market is historically still very low but mortgage lenders have struggled to satisfy even the small increase in demand resulting from the recent modest increase in purchase activity.
“Fixed rates were initially increased a month ago to reflect an increase in swap rates but have since not only not fallen back in line with swap rates but have risen further as lenders respond to increased demand by pushing rates up even more to deter business.”