Bank of England keeps rates unchanged

The size of the central bank’s asset purchase facility as maintained at £375bn, also as anticipated.

Commenting on the decision, Chris Wiliamson, chief economist at Markit said: "The Eurozone is edging closer towards another downturn, with the Eurozone PMI sinking to a 16-month low in November, and worries about the crisis with Russia and the impact of sanctions have hit business confidence. Closer to home, the forthcoming General Election next year has the potential to destabilise the economy.

“With these risks abounding, it can be argued that now is not the time to be starting to normalise policy, even gradually, as this will introduce one more worry to households and businesses. Higher rates would also of course push up the exchange rate, hitting already-lacklustre export performance.

“It’s likely, therefore, that the doves will continue to outnumber the hawks for some time to come, meaning it is likely that any hike in interest rates will be delayed until the second half of next year.”