The Bank also decided against an increase in its policy of Quantitative Easing. In October the Bank said it would inject another £75bn into the economy through QE.
The MPC expects the announced programme to take another two months to complete.
David Brown, commercial director of LSL Property Services, said: “The MPC may have held interest rates at a historic low for yet another month, but it has not stopped the cost of borrowing from steadily rising in recent weeks.
“Despite the low base rate Libor has been climbing. As a result, many lenders have increased the cost of new mortgage products.
“With the ongoing eurozone crisis likely to continue to inflate banks’ wholesale funding costs, further mortgage rate rises could be on the cards.
“When you factor in the toll taken on borrowers’ finances by the rocketing cost of living and sluggish wage growth, there is an increasing likelihood of a growing number of arrears cases in 2012, even without the MPC hiking interest rates.”
Chris Parrish, group treasurer at the Yorkshire, said: “Today’s decision to leave the Base Rate unchanged at 0.50% was widely anticipated across the industry.
“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. Many economists now believe that the Base Rate will remain at its current level for the foreseeable future.
"Variable rate mortgages will continue to remain popular whilst the Base Rate remains low.”
Ben Thompson, managing director of the Legal & General Mortgage Club, said: "Although recent figures suggest the UK appears to be slowing in terms of output, today would have been too early for a further dose of QE.
“With that said there will have been lots to discuss, not least the current plight of the Euro and its potential for wider contagion.
“If the uncertainty and gloomy statistics continue, it won't be long before another dose becomes very necessary, however it is not the time now for any early Christmas present."
