Borrowers have been spared a second rise in interest rates in as many months.
There had been fears that the Bank of England might spring another shock at its monthly meeting, following January's quarter-point hike to 5.25%.
Despite the reprieve, economists said it was likely that the Bank's Monetary Policy Committee (MPC) would increase borrowing costs in the spring.
The pressure on borrowers, following three rises since August, comes as the MPC battles to keep inflation on track to meet its long-term target of 2%.
The Consumer Prices Index (CPI) stood at 3% in December, just short of the level at which Governor Mervyn King has to write an open letter to Chancellor Gordon Brown explaining why inflation is so high.
The decision to keep interest rates on hold was the second piece of good news for households after British Gas announced plans to cut prices.
A quarter-point rise in rates today would have resulted in a homeowner with a typical £100,000 mortgage paying £63.79 a month more than in August, prior to the first of the recent rate hikes.
Industry leaders described the Bank's decision as a sensible move.
CBI chief economic adviser Ian McCafferty said: "The Bank has decided that last month's surprise increase is enough for now and needs to assess the impact on inflation and the economy before deciding the next move.
"However, the economy is still growing rapidly and concerns remain about more ingrained inflation, with firms putting up prices in the face of a profit squeeze and a far from certain outcome in the current pay round. So, it is too early to say if interest rates have peaked."
