The Bank of England held interest rates at 0.5 per cent today, a rate that has been unchanged since March 2009.

The next decision will be made on the 8 December.

Some analysts had expected an interest rate rise by now but it looks like a rise will not happen until next year at the earliest.

Lloyds noted earlier this week it would be unlikely to meet its medium-term targets due to the lack of rate rise.

The quantitative easing programme remained at £275bn after the addition of £75bn last month.

The Bank announced it would be buying £75bn of gilts in the next four months in a bid to prevent inflation falling below two per cent.

Members of the Monetary Policy Committee voted unanimously to increase the size of the asset purchase programme as it fears that, following the VAT adjustment in January, inflation could fall below two per cent.

Two per cent is the official target for the Bank of England.

The previous increase of the asset purchase programme was ‘economically significant’ and added 1.5 per cent to GDP and 0.75 per cent to CPI inflation.

Further details of this month’s decision will be published in the MPC Minutes on 23 November.