The Committee also voted to keep asset purchase reserves at £375bn.
Barry Naisbitt, chief economist at Santander UK, said: “Following the major change in the approach to monetary policy announced last August, the Monetary Policy Committee (MPC) was not expected to do anything other than hold the central bank rate again this month.
However, the decision was made against a background of continued positive economic news, he said.
“This will give a degree of comfort to the MPC that it has scope to hold rates at their current level for some while longer. Next month’s inflation report and any changes that the MPC may make to its outlook for the economy are likely to be the next areas of focus.”
The meeting minutes will be out on Wednesday 22 January.
BoE governor Mark Carney’s (pictured) Forward Guidance on interest rates could be under review, with commentators suggesting he may drop the trigger for a possible rate rise down to unemployment figures of 6.5 from 7% in February.
Improving economic indicators saw a sharp fall in unemployment figures to 7.4% in October meaning the threshold could be hit far sooner.
