The Bank of England had held interest rates at 0.5 per cent for the seventh month in a row.
Some analysts expect rates to remain at current levels until well into next year.
The decision to keep rates as they are was expected and came as the Bank said it would continue to pump up to £175bn into the UK economy to stimulate recovery through its programme of quantitative easing.
It is believed official figures to be released later this month will reveal that the country's economy has finally emerged from recession.
Noting the Bank's decision to peg rates, Dr Helen Hill, policy director at the London Chamber of Commerce and Industry, said: "With a double dip recession still a much greater threat than runaway inflation, the only sensible option was to keep rates on hold.
"The business community is not expecting the [Bank of England] to make any bold changes in rates in the coming months while the UK's economic recovery remains tentative."