Savers will continue to be hit hard after the Bank of England kept interest rates at the historic low of 0.5 per cent.

The bank’s Monetary Policy Committee voted to maintain the official bank rate for the 13th month in a row.

The committee also voted to hold its policy of creating money - so-called quantitative easing - to £200bn. The Bank Rate was first reduced to 0.5 per cent on March 5 last year.

David Black, banking specialist at Defaqto, said it was bad news for savers: "With inflation at 3.5 per cent and tax being levied on gross returns it’s getting really hard for savers. Once again those hardest hit will be those who rely on savings interest to supplement their day-to-day living which will be the case for many pensioners.

"Those wishing to get the best variable savings rates really need to move their money around on a regular basis to take advantage of special deals such as introductory bonuses. Some existing accounts pay rates as low as 0.01% so savers really need to avoid the obvious pitfalls of inertia."

Ian McCafferty, chief economic adviser to the CBI, the employers organisation, said: "This month it would have been surprising if the Bank had done anything else. In keeping its quantitative easing policy and interest rates unchanged, the MPC has weighed the recent, fragile improvement in economic activity against residual concerns about inflationary pressures and the weak pound.

"As the economic recovery has extremely shallow roots concerns, the Bank should stand ready to continue with its quantitative easing programme, as required."