The Bank of England has announced its decision to hold the base rate of interest at its current historic low of 0.50%.

The Monetary Policy Committee also opted against altering its quantitative easing programme, under which it has already created £200bn to pump into the economy.

The nine-member committee's decision not to tinker with monetary policy was widely predicted.

The move leaves the interest rate unchanged for the 10th month in a row and suggests the Bank is treating recent signs of a tentative recovery with caution.

It comes despite figures this week showing a two-year high for manufacturing activity, recovering mortgage lending and a raft of positive Christmas trading updates from across the high street.

Although the UK is expected to have finally emerged from recession in the final quarter of 2009, many predict the MPC will leave interest rates on hold well into this year to avoid threatening recovery.

Source: Sky News