The Bank of England held interest rates at 0.5 per cent today, a rate that has been unchanged for 30 months.
The decision follows news from the Bank that savers have lost more than £43bn since the interest rate was cut in March 2009. This was calculated by comparing incomes before and after the rates cut.
However borrowers have benefitted by more than £51bn as they have paid less interest on their loans and mortgages have fallen to record lows.
The Bank also decided that the amount of money in the £200bn quantitative easing programme should not be increased.
Only one member of the committee Adam Posen has been in favour of further quantitative easing recently but the voting split will not be revealed until the MPC minutes next week.
However research from the National Institute of Economic and Social Research suggests that quantitative easing may be necessary if the weak economy persists.
The thinktank forecasts the rate of growth in the UK economy has slowed to 0.2 per cent in June and August. This compares with a growth of 0.6 per cent between May and July.
The NIESR said: “If this economic weakness persists over the next few months, the MPC will probably implement a further round of quantitative easing.”
The next MPC decision will be made on the 6 October.
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