Interest rates have been kept on hold at 0.5% for the 16th consecutive month by the Bank of England.

The Bank's Monetary Policy Committee (MPC) also decided not to inject any more money into the economy under its policy of quantitative easing (QE).

The holding of the interest rate had been expected but calls for an increase to help ease inflation are growing. In June, MPC member Andrew Sentance voted to raise rates to 0.75%, the first time a MPC member had called for a rise since August 2008.

However, the British Chamber of Commerce has backed the decision.

"We fully support the decision to keep interest rates and the Quantitative Easing programme on hold," said David Kern, Chief Economist at the BCC.

"New risks of a global downturn, combined with the underlying weaknesses still facing the UK economy, make it important for the MPC to persevere with expansionary policies. Any consideration of raising interest rates, or reducing QE, must be rejected until there is more conclusive evidence that growth is secure."