The Bank of England surprised few people with the results of the latest vote on the base rate.  The rate will remain the same for yet another month.  The rate has now been at the historically low level of 0.5% for well over two years.

The rate is voted on by a nine-member panel called the Monetary Policy Committee.  The panel decided to leave the rate unchanged after much speculation by many analysts who thought the rate would be increased by the beginning of the summer.

Recent data indicate an economy which is still in its pre-recovery stage and is not displaying any figures close to full strength yet.

Some economists feel strongly about the rate of inflation which currently sits at 2% over the target rate.  They believe unless the base rate is increased soon the economy could become the victim of spiraling inflation levels which could set the recovery back even further.

The British Chambers of Commerce economist, David Kern, supported the decision by the MPC, saying: "Businesses will be supportive of the MPC's decision to leave interest rates and the quantitative easing programme unchanged.

"Given the fragility of the recovery, and the acute pressures facing businesses and consumers, the Committee was right to reject demands for early rate increases.

"With UK inflation more than double its two per cent target, and likely to increase further in the next few months, it's natural for the MPC to feel uneasy.

"Tightening policy in reaction to internationally generated inflation and higher utility prices would have been a big mistake. Premature rate increases, at a time when the Government is tightening fiscal policy, could seriously harm jobs and growth."