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It also chose to keep its quantitative easing programme at its current level of £200 billion, with the minutes of the meeting due to be published on Wednesday May 18th 2011.
However, the decision has not been well received in all quarters. Saga director general Dr Ros Altmann claimed economic growth could be hampered by the MPC's strategy.
She said: "We have reached a point where I believe not raising rates is actually damaging the economy.
"Contrary to perceived wisdom keeping rates low could damage economic recovery, not help it."
The company has called for the MPC to raise interest rates as soon as possible in order to increase consumer confidence and help stabilise inflation.
Dr Altmann highlighted how many Saga customers remember the period of stagflation experienced in the UK and how damaging it was to the country.
Posted by Greg Secker
