Interest Rates latest....
The Bank of England has held interest rates at a record low of 0.5 per cent.
Rates have plummeted from 5 per cent last October and the Bank's Monetary Policy Committee had been expected to keep the level unchanged.
Meanwhile, the BoE said it will maintain its £125 billion quantitative easing (QE) programme - effectively printing money.
"The scale of the programme will be kept under review," the Bank said.
Rate-setters have hinted that further stimulus may be necessary and they have permission from Chancellor Alistair Darling to create another £25 billion under QE if needed - to a £150 billion initial limit.
At the Bank's last inflation report, Governor Mervyn King said there were some "promising signs" but warned of a "relatively slow and protracted" recovery for the economy.
The Bank is charged with keeping inflation at 2 per cent and its benchmark, the Consumer Prices Index (CPI), slid to 2.3 per cent from 2.9 per cent in April.
The MPC expects CPI to fall well below the 2 per cent target later this year, but will also be wary of the deflationary impact of the pound's recent strength, which could act as a further drag.
Ian McCafferty, chief economic adviser to the CBI business group, said: "There are some encouraging, if tentative, signs that the QE programme is reducing the downside risk to the economy, but monetary and lending conditions remain fragile.
"The Bank is likely to need to continue to use the QE tool in coming months."