The Bank of England’s rate-setting body the Monetary Policy Committee (MPC) has decided to keep interest rates on hold at 5.25% for the fifth time in a row when it met today.

Despite positive inflation news earlier this week the Monetary Policy Committee resisted the temptation to lower base rates.

The MPC voted by a majority of 8–1 to maintain Bank Rate at 5.25%. One member preferred to reduce Bank Rate by 0.25 percentage points, to 5%.

The current rate is the highest for nearly 16 years – though many anticipate a rate cut later in the year – probably in the summer.

The MPC held the rate at its previous meeting in February as part of its effort to control inflation which remains above its 2% target.