However, minutes from the MPC meeting suggest that most members believe a cut will happen in its next meeting in August.
As discussed earlier this week, markets had overwhelmingly priced in a high chance that rates would be cut.
The FTSE 100 had surprised many with its strong run post the EU referendum vote on 23 June.
However, this 11-month high is unlikely to last with the main index having dropped off significantly this afternoon on the Bank of England’s announcement.
“The market had treated a Bank of England base rate cut as a foregone conclusion, following the dovish commentary in the aftermath of the UK’s vote to leave the EU,” said David Katimbo-Mugwanya, fixed income fund manager at EdenTree Investment Management.
“Inaction by the Bank of England at this juncture seems to imply it wishes to make a more detailed assessment of the potential shock to economic growth, ahead of announcing any policy measures to mitigate a slowdown.
“These may well include further quantitative easing as early as next month, when the Bank releases new growth and inflation forecasts in its Quarterly Inflation Report.”