The Bank justified its decision against a backdrop of a weak economy, uncertain outlook for the eurozone, and falling UK inflation. It said without more stimulus, inflation was more likely to fall below the 2pc target in the medium-term.



"In the UK, the underlying pace of recovery slowed in 2011, with activity falling slightly during the final quarter," the Bank said. "Some recent business surveys have painted a more positive picture and asset prices have risen. But the pace of expansion in the UK's main export markets has also slowed and concerns remain."