The Bank of England announced today that it was holding its base rate at 0.5 per cent for the 28th consecutive month.

The rate has not been changed since March 2009. The next decision will be made on the 4 August.

Economists had not forecast any change to occur due to the economy remaining relatively weak in the UK.

Key problems were the decline in consumer spending and weak manufacturing and services figures.

The recent government debt problems in Greece also contributed to the decision as there is much economic uncertainty within the Eurozone.

There is the possibility of a rate rise in November, say some economists, but most forecasters say that if recovery continues to be weak, this could be postponed until early 2012.

Inflation remains at 4.5 per cent and an announcement will be made next week about the latest inflation figures.