The Bank of England's Monetary Policy Committee (MPC) has today voted to keep the base rate at the all-time low figure of 0.5%. Click here to compare savings The MPC also voted to continue with its programme of asset purchases financed by the issuance of central bank reserves and to increase its size by 25 billion to 200 billion. The rate first dropped to 0.5% - the lowest in the banks 316-year history - in March in an attempt to encourage lenders to pass on savings to consumers and boost borrowing in the wider economy. Todays announcement sees the rate frozen for eight consecutive months, following five months of cuts. The Bank says households have reduced their spending substantially, while business investment has fallen sharply. However, it says a number of indicators of spending and confidence suggest a pick up in economic activity may not be far away. Economists are forecasting that the base rate will remain at 0.5% into 2011, and interest rates could remain low for five years. Click here to compare to compare mortgages The Centre for Economics and Business Research (CEBR) said that the BoE base rate would stay below 2% until 2014. A statement released by the Bank of England said: "In the light of the Committees latest Inflation Report projections and in order to keep inflation on track to meet the 2% inflation target over the medium term, the Committee judged that maintaining Bank Rate at 0.5% was appropriate. "The Committee also agreed that it should extend its programme of purchases of government and corporate debt by 25 billion to a total of 200 billion, financed by the issuance of central bank reserves. The Committee expects the announced programme to take three months to complete. The scale of the programme will be kept under review."