The Bank's Monetary Policy Committee said the cut and other measures in August led to a "greater than expected" boost to the economy.

Most commentators expected the rate this month to remain the same but opinion is divided on the direction of the next change. Some experts believe that another cut is needed but other says the strength of the post-Brexit econonmy means a rise is more likely. An early change is not expected although the MPC has hinted that a possible cut could take place later this year. The base rate reduction in early August was the first change since March 2009. 

The Monetary Policy Committee decided unanimously this month to hold the Bank Rate at 0.25% and maintain government bond purchases at £435bn and corporate bond purchases at up to £10bn

The MPC said that the interest rate cut in August had had a broadly "encouraging" effect on the economy and on asset prices but it will continue to "closely monitor" the impact on asset prices and interest rates facing households to see if further action is required.

In a statement the MPC said: "At its meeting ending on 14 September 2016, the MPC voted unanimously to maintain Bank Rate at 0.25%. The Committee voted unanimously to continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves. The Committee also voted unanimously to continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.

"The package of measures announced by the Committee at its August meeting led to a greater than anticipated boost to UK asset prices. Short and long-term market interest rates fell notably following the announcement; corporate bond spreads narrowed, and issuance was strong; and equity prices rose. Since then, some of the falls in yields have reversed, driven by somewhat stronger-than-expected UK data and a generalised rise in global yields.

"Many banks announced cuts in Standard Variable Rate and Tracker mortgage rates in line with the cut in Bank Rate. Deposit rates fell in August, although on average these falls were slightly smaller than the cut in Bank Rate. Fixed rates on new mortgage lending also fell. Overall, while the evidence on the initial impact of the policy package is encouraging, the Committee will monitor closely changes in asset prices and in interest rates facing households and firms and their effect on economic activity."