The nine-member committee was split 5-4 in this morning’s vote, with four members supporting a reduction to 3.75%.

However, analysts say a rate cut in the run-up to Christmas now appears likely.

Luke Bartholomew, deputy chief economist at Aberdeen, said: “Over the last few weeks, speculation had been growing that the Bank of England might cut interest rates today.

“But a decision to keep rates on hold was always more likely than not and clearly the decision was very close.

“With inflation and wage growth moderating, and the budget likely to deliver tax increases, a cut in December looks increasingly likely.

“We think interest rates will then come down further through next year as well.”

Markets are “pricing in a strong chance of a 25 basis point cut next month”, according to Kevin Brown, savings expert at Scottish Friendly.

“However, we don’t believe that will result in an opening of the floodgates – memories of double-digit inflation are still fresh, and the BoE will want to avoid reigniting price pressures,” he added.

“For borrowers, a hold may sound disappointing, but they have benefitted from lower borrowing costs in recent weeks thanks to a price war among High Street lenders. 

“As for savers, today’s decision only brings temporary relief. Savings rates have been drifting down and will likely fall further if the BoE acts next month, so shopping around remains essential. 

“Over the long term though, investing provides the greatest potential to outpace inflation.

“If the Chancellor proceeds with plans to reduce the annual Cash ISA allowance, we expect more savers to look to the stock market – a move that would not only support their own returns but also help fund growth in UK businesses.”