The MPC vote was eight to one in favour of keeping the rate on hold.

There had been some hope of a further cut – perhaps encouraged by the US Fed’s recent decision to reduce its rate by 0.5%.

However, the US rate cut really represents a catch up with other Western economies rather than a trend in itself.

Analyst consensus prior to the Bank of England’s meeting for September was for rates to stay put – for now.

Sticky inflation in the services sector is seen as a significant factor in the MPC deciding not to cut rates further at this time.

The Monetary Policy Committee cut rates from a 16-year high by 0.25% to 5% in August, the first rate cut in four years.

Markets are still pencilling in two cuts by the end of the year.