The interest rate has been kept on hold at 0.5 per cent after a series of sharp cuts over the past six months.

The interest rate now stands at an all time low, after the Bank of England progressively slashed it from October’s 5 per cent in an effort to kick-start the economy and stimulate consumer spending.

Retailers have welcomed the recent cuts in the interest rate, as it is hoped mortgage holders will have more money and begin spending again.

This year the Bank of England introduced quantitative easing to encourage lending, with £26.4bn having been pumped into the economy so far.