The MPC also voted unanimously to maintain the stock of corporate bond purchases and UK government bond purchases.

Since the MPC’s previous meeting, economic data has been broadly in line with the MPC’s November Report with a steady economic picture in evidence.

Global growth has shown “tentative signs” of stabilising and a partial de-escalation of the US-China trade war provides some additional support to the outlook relative, said the MPC.

UK GDP increased by 0.3% in 2019 Q3 and is expected to rise only marginally in Q4.

The bank noted that since November the sterling exchange rate has appreciated by 2% and UK-focused equities have outperformed their international counterparts.

It said there was “no evidence yet about the extent to which policy uncertainties among companies and households have declined.”

CPI inflation remained at 1.5% in November and core CPI inflation remained at 1.7%, broadly as expected, it added. The headline rate is expected to fall to around 1.25% by the spring, owing to the temporary effects of falls in regulated energy and water prices.

The MPC will be monitoring closely the impact of Brexit developments on the economy, it said.

Robert Alster, head of investment services at Close Brothers Asset Management, said: “Slow-but-stable wage growth and low inflation have enabled the Bank of England to remain on the side-lines, and that’s unlikely to change until well into 2020.

“The announcement of the new Governor of the Bank of England is expected imminently, but the story is the Government. While the strategic direction of the MPC is unlikely to change under a new lead, it is the government reshuffle in the New Year that will set the tone of Brexit negotiations.

“While the Bank is forecasting a significant rebound in investment spending, boosting UK GDP, businesses will require greater political clarity from the Government in order to have the confidence to invest.”