The Bank of England has voted to hold interest rates at 0.5% against a backdrop of weak UK growth figures and a surprise dip in inflation.

Many had expected this to be the month when rates finally began to rise, but data released last month showed GDP had increased by just 0.5% in the first quarter of 2011, far lower than the near 1% figure many had been hoping for.

Such underwhelming growth was only enough to counter the shock 0.5% decline witnessed in the previous quarter, and raised questions about whether the economy could handle the impact of a rate hike at this point.

Today's widely-anticipated decision means that rates have stayed at their record low for 26 months.