At yesterday’s meeting, the committee voted 5-4 to maintain the bank rate at its current level, with four members backing a reduction to 3.5%.

In a statement, the Bank of England said further reductions are likely depending on “the evolution of the outlook for inflation”.

CPI inflation is currently above the 2% target but expected to fall back from April, owing to “developments in energy prices including from Budget 2025”.

Luke Bartholomew, deputy chief economist at Aberdeen, said a rate cut at the next meeting in March “is most certainly on the table”.

“Even if it takes a bit longer for the next cut to come through, we still think there is a strong case for rates to eventually fall to 3% later this year,” he added.

Kevin Brown, savings expert at Scottish Friendly, said: “December’s CPI uptick showed how quickly price pressures can reappear, and by holding rates, the Bank of England clearly wasn’t prepared to risk another cut so soon.

“But this pause shouldn’t be mistaken for a change in direction. The labour market is cooling, wage growth is slowing, and inflation is anticipated to fall this year as price pressures fade.

“If that plays out as expected, one or two further cuts later this year are still on the cards, with spring still the most likely window for the next move.”