The committee also voted unanimously to maintain the asset purchase programme at £375bn.
The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009.
Nick Dixon, investment director at Aegon UK, said: “General uncertainty may have forced the hand of the MPC to sit tight for the 84th month in a row. Global deflationary pressures spurred by declining commodity prices and negative interest rates are making investors turn bearish on economic fundamentals.
"Closer to home, cuts to forecast growth announced in the Budget strengthen the Bank’s dovish stance and there’s certainly no rush for mortgage holders to fix their borrowing rates any time before the Autumn Statement.”
Maike Currie, investment director for personal investing at Fidelity International, said: “With recent manufacturing and construction sector data disappointing and reports that the service sector is faltering, there’s little doubt that the UK economy is slowing. Accordingly, there have been suggestions that interest rates might be cut to zero.
"But today’s Monetary Policy Committee announcement shows that the Old Lady of Threadneedle isn’t quite ready to make this move, despite many developed world central banks joining the negative interest rate club. Once again, the MPC unanimously voted in favour of keeping rates at 0.5%. This marks the seven year anniversary of UK interest rates lingering at a historical low."
He said: “With all members of the MPC voting unanimously to keep interest rates at half a per cent and with recent UK economic data disappointing, a rate hike remains off the cards. Indeed, the Bank of England could cut interest rates to zero, an option which governor Mark Carney has not ruled out entirely.
“Seven years of record low interest rates has meant a relentless income famine for savers, particularly those who have stashed their saving in cash ISAs.
“With no signs of an interest rate hike any time soon and a genuine possibility that rates might even be cut to zero, income starved investors are likely to continue to turn to stocks and shares and UK equity income funds as a rare source of yield.”
Below is the statement issued by The Bank of England’s Monetary Policy Committee today:
At its meeting ending on 16 March 2016, the MPC voted unanimously to maintain Bank Rate at 0.5%. The Committee also voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.
Twelve-month CPI inflation rose to 0.3% in January. Inflation nonetheless remains well below the 2% inflation target. This is due predominantly to unusually large drags from energy and food prices, which are expected to fade in the coming months. But core inflation also remains subdued, a consequence of the past appreciation of sterling, weak global inflation and restrained domestic cost growth.
Returning inflation to the 2% target requires balancing the drag from external factors against increases in domestic cost growth. Fully offsetting that drag over the short run would, in the MPC’s judgement, involve too rapid an acceleration in domestic costs, one that would risk being unsustainable and would lead to undesirable volatility in output and employment. Given these considerations, the MPC intends to set monetary policy to ensure that growth is sufficient to return inflation to the target in around two years and keep it there in the absence of further shocks.