In a bid to improve lending conditions the Bank also put an extra £25billion into the economy through its quantitative easing (QE) programme.
This is aimed at increasing the money supply and helping the economy, bringing planned spending to a total of £200billion.
In response to the moves, Nick Hopkinson, Director of Property Portfolio Rescue (PPR) said: "Repeated industry reports highlight that Quantitative Easing (QE) has done little to help struggling businesses and mortgage borrowers get access to realistic loans.
"The only beneficiaries of this policy appear to be the big banks who are now making record profits off the back of taxpayer support. It is beyond belief that the Government is still being forced into providing more money to bankers!
"Eventually, QE will drive inflation up and lead to higher interest rates, putting more pressure onto struggling homeowners."
Meanwhile, Stuart Law, Chief Executive of Assetz, said: "It is no surprise that the Bank of England has decided to hold base rates again at the historically low 0.5%. These rates are a good sign for residential homeowners and property investors alike. However, for potential investors and homeowners to take full advantage of the low rates, lenders must ease the restrictions on their lending criteria to help more people join or move up the property ladder."
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