The Bank of England’s Monetary Policy Committee (MPC) has voted to keep interest rates on hold at 0.5%, a move which was widely anticipated by many analysts.

Without much room to cut rates further and with some areas of the economy feeling that the worst of the recession is over, the Bank did not announce any fresh measures to stimulate the economy.

David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: “Most expected interest rates to be kept on hold, so the real debate is over the success, size and scope of quantitative easing.

“The positive mood in the financial markets should not lull anyone into a false sense of security. Tackling the recession must remain the priority, especially with unemployment rising and firms continuing to slash investment.

“The MPC must up the tempo at which they execute QE while increasing the scheme’s size beyond £125 billion. Longer-term inflation threats need to be addressed with a credible exit strategy, but only after the real economy stabilses.”