The Bank of England has held interest rates at 0.5% and kept its quantitative easing programme at £200bn.
The decision to maintain the base rate at the historic low, where it has been since March 2009, comes as MPC members have been put under mounting pressure to hike rates amid escalating inflation. In December, the CPI index soared well above its target figure of 2% to hit 3.7%.
City economists had attached a 20% chance of an increase in the base rate today to combat inflation.
Recently, Martin Weale joined fellow MPC member Andrew Sentance in pushing for a 0.25% rise. And last week the Bank's deputy governor Charles Bean added to the clamour for a tightening of policy when he said the MPC could be forced to hike rates amid surging commodity prices.
But today's holding of rates suggests the MPC is more concerned about the stalling economic recovery after data showed UK GDP surprisingly contracted 0.5% during the last three months of 2010. Against this, however, recent figures have pointed to a rebound in the manufacturing and services sector.
The hold in the base rate also follows a warning from the British Retail Consortium that a rise in rates in the face of a slowdown in the housing market and weak consumer confidence would undermine a "very uncertain recovery".
The last time the Bank raised the borrowing rate was as far back as July 2007 when it raised the base rate by a quarter point to 5.75%.
Despite City economists expecting today's decision, most believe a hike is likely later in the year. The CBI also expects the Bank to increase borrowing costs in the next few months.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till