The Bank of England held interest rates at 0.5 per cent today and kept the asset purchase programme at £325bn.

The figures were decided by members of the Monetary Policy Committee at its latest meeting held on 6 and 7 June.

The Committee last increased the asset purchase programme in February when it added £25bn and this was completed in May. Interest rates have remained on hold since March 2009.

Last month Christine Lagarde, head of the International Monetary Fund, called for Britain to lower its interest rates even further to zero per cent to reduce the burden on households and small businesses.

Inflation currently stands at 3 per cent, according to the latest figures from the Office for National Statistics, but the Committee is hoping this will fall towards its 2 per cent target before the middle of next year.

John McNeill, head of international rates at Kames Capital, said: “Although the economic news both domestically and from the Eurozone has deteriorated, the Bank may want further time to assess the impact of the additional asset purchases which were completed in May.

“Furthermore, there is a group within the Committee that remains uncomfortable with the slow deceleration of inflation.”

Minutes of the meeting will be published on 20 June which will highlight details of the decision and the next committee meeting will be held on 4-5 July.