Interest rates stay on hold

The move was widely anticipated and there were no changes to quantitative easing measures either.

Commenting, Jonathan Samuels, CEO of Drawbridge Finance, said: "The monthly meeting of the MPC has become something of a non-event.

"Ongoing uncertainty around the strength of the recovery, and real fear of a premature rate hike hitting business and consumers hard, is likely to keep rates on hold until at least the summer of 2011.

"Yes, the economy is stronger than it was a year ago but could it remain standing without the prop of a 0.5% base rate?

"For the property market, rates at their current level will act as a glass floor on prices. As seen with the November Halifax house price data, showing a decline of 0.1%, prices appear to have entered a kind of limbo. There are too many conflicting variables to send them in one direction or the other.

"The key time for the property market will come when rates eventually rise. It's crucial that when rates do rise they go up at a pace that will not give the economy — and consumers — the bends."