It's the seventh time in a row that the Bank's Monetary Policy Committee has opted to keep the base rate unchanged. Before this, there had been almost two years of consecutive hikes.
Here, Which? explains what today's announcement means for mortgages and savings, and considers when the rate might finally begin to fall.
June's base rate decision
The Bank of England's Monetary Policy Committee has voted by a majority of 7 to 2 to keep the base rate at 5.25%.
Two members voted to cut the rate by 0.25 percentage points, to 5%.
The decision was widely expected, with financial experts anticipating interest rates wouldn't be cut until later this year.
Find out more:When will the base rate fall?
The Bank's remit is to maintain inflation at a rate of 2%, and the base rate is a key mechanism in achieving this.
While this is good news, it is the first time since July 2021 that inflation has been at the target level, and the Bank believes it is too early to cut the base rate.
In its announcement, the Bank stated that 'monetary policy will need to remain restrictive for sufficiently long to return inflation to 2% sustainably in the medium term.'
On course for a cut
The base rate will next be reviewed on 1 August, and there are some hopes a reduction could be on the way.
Matt Smith of the property portal Rightmove says: 'While the base rate hasn't dropped today, yesterday's positive inflation figure has kept us on course for a first cut in August.
'While many will have hoped for a surprise cut, a hold was expected by the market – and this certainty could still lead to mortgage rates trickling down rather than up over the next few weeks.'
Find out moreHow does the base rate freeze impact my mortgage?
Today's announcement will be frustrating for mortgage holders and home buyers who were hoping that interest rates would drop.
If you're on a variable rate deal linked to the base rate, your mortgage repayments will remain the same.
Since the last base rate decision in May, mortgage rates have risen slightly.
Find out more:What if I can't afford my mortgage?
What does the base rate freeze mean for savings?
In theory, the base rate freeze should see interest rates on savings accounts remain steady. However, providers could start to factor in potential falls in future and start lowering rates.
Excluding accounts with limited withdrawals or other restrictions, the best instant-access savings rate is currently 5.2%
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