Two members of the MPC, Jonathan Haskel and Michael Saunders, voted to reduce Bank Rate by 25 basis points.

Frances Haque, Santander UK chief economist, commented: “The MPC’s decision to leave Bank Rate unchanged was a tight call this month, particularly given comments made in recent weeks by members.

“As such, all eyes were on the economic data published last week, with January flash PMIs leading to stronger growth than expected with increases across both manufacturing and services.

“This, along with positive labour market data and buoyant survey data from RICS, Deloitte and CBI will all have helped to stay the hand of the MPC, at least for now until more economic data for the beginning of the year emerges.

“We now wait to see whether the bounce in confidence from the General Election continues to feed through to growth at the start of 2020.”

Alex Maddox, capital markets & digital director at Kensington Mortgages, said: “While today’s result could have swung either way – now we have clarity.

“Weak economic growth in the last quarter of 2019 made it a close call for the Bank of England’s monetary policy committee to cut rates today. However, low unemployment figures and recent political certainty following the General Election has boosted optimism in the market.

“It’s business as usual for now and the bank continues to keep its powder dry. As the year continues and we have more clarity on the Brexit transition and trade talk discussions, it will be interesting to see whether there will be any further easing if conditions do not improve.”