The decision was widely expected. Last month, the central bank released its Inflation Report and signaled it will wait until next year to raise interest rates, citing 1.4 million people who are working part-time because they are unable to find full time work.
However, in the three months to March, the jobless rate decreased to 6.8 percent from 6.9 percent in the previous period and pay growth rose more than inflation for the first time since 2010.
The inflation rate accelerated for the first time in seven months to 1.8 percent in April. Meanwhile, Halifax house price index increased 3.9 percent over the previous month in May, the highest increase in nearly twelve years.
The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5 percent on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.