Latest News

The move marks the fifth month in a row that the interest rate has remained static. However, with the country's economy continuing to roll into recession, many pundits are expecting a drop in interest rates by the end of the year.

Inflation is double the BoE's target of 2%, and makes sorry reading for the embattled Chancellor, whose recent comments on the state of the economy have only compounded the problem.

In an interview with BBC News, TUC Head of Economics and Social Affairs Adam Lent said with a recession on the cards, inflation was no longer the main threat to the economy.

"This is a depressing decision," he said.

"A cut today would have offered hope to all those who fear for their jobs and homes, and helped cut through the economic pessimism that is now doing as much damage as the credit crunch and energy prices."