The decision by the Bank of England to keep interest rates at 0.5 per cent is likely to have the most impact on pensioners.

According to James Caldwell, director of Fairinvestment.co.uk, pensioners have particularly suffered during the credit crunch, with this latest move dealing them another blow.

"This time last year, pensioners were enjoying interest rates on their savings that were ten times what they are now, when the base interest rate stood at five per cent," Mr Caldwell continues.

He adds that the average no notice savings account now has a rate of 0.65 per cent, giving pensioners little return on the money they have set aside.

This is unlikely to change in the short-term, he continues, with many having their pensions linked to the retail price index and rely on savings to supplement the cost of living.

The interest rate decision was also met with trepidation by the Building Societies Association, which said it did little to attract new deposits and boost mortgage lending.

It added that the effects of the quantitative easing programme may help reduce the severity of the economic downturn.