MPC: Base Rate held at 0.50%

The Bank of England's Monetary Policy Committee voted unanimously to keep bank rate at a record low of 0.5% in November as well, as Eurozone contagion is predicted to keep rates at 0.5% for at least two years.

Minutes from the last committee's meeting earlier this month revealed governor Mervyn King and his colleagues are concerned inflation may remain higher than expected next year.

Chris Parrish, group treasurer at the Yorkshire, said: "The Consumer Prices Index (CPI) inflation rate fell to 5.0% in October from 5.2% the previous month and although this is markedly higher than the Government's target, the instability of the domestic and worldwide economies continues to be the principal factor in the MPC's decision-making."

He added many economists now believe that the Base Rate will remain at its current level for the foreseeable future.