The Bank of England's Monetary Policy Committee (MPC) has voted to keep interest rates on hold at 5%.
The move was widely expected by market commentators as the MPC has repeatedly outlined its concerns about inflation.
The move is unlikely to be welcomed by homeowners, but recent falls in mortgage rates should help soften the blow.
The rate has remained at 5% since April 2008, and a further cut is not expected until later in the year despite the UK’s rapidly declining economic position.
The European Central Bank also kept interest rates on hold at 4.25% despite falling GDP in some of Europe's largest economies.
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