The decision by the bank's Monetary Policy Committee (MPC) means rates will stay at their current record low for an 18th month. It suggests the committee does not see high inflation as a serious concern.
Economists broadly welcomed the bank's decision, arguing that low interest rates were still needed to help the recovery in the economy, particularly with cuts in public sector spending expected to hit growth.
"While GDP growth in [the second quarter] was the strongest in four years, the data probably overstated the strength of economic activity," said Nida Ali, economic adviser to the Ernst & Young Item Club.
"And with significant fiscal tightening ahead, growth is likely to slow significantly.
"The MPC made the right decision," agreed David Kern, chief economist at the British Chambers of Commerce (BCC).
I am now fairly relaxed about the mid term prospects for low interest rates and level house prices or better. I just hope that I am not being too complacent. There seems less need to lose sleep worrying about the doomsday scenario.
