The Bank of England has kept interest rates on hold for August and as expected held off from any more stimulus measures.
Its rate-setting Monetary Policy Committee has voted to maintain rates at the historic low of 0.5%.
It also decided not to increase its programme of quantitative easing, having lifted it by £50bn last month.
Commenting Peter Hensman, global strategist at Newton Investment Management, said: “As expected, the Bank of England left its monetary policy unchanged at the regular meeting of the Monetary Policy Committee.
“Despite the latest GDP data reporting a 0.7% decline in output in Q2, further policy action from the Bank will likely be saved until later in 2012 and only if the threats to domestic economic and financial conditions from the eurozone and the broader global slowdown become apparent.
“Although the drop in GDP was the largest since the 2009 recession and confirmed the “double dip” downturn, the potential weather, holiday and Olympics related distortions to the data made any immediate response unlikely.
“This is particularly the case as the MPC only increased the scale of its quantitative easing program last month, and the Bank has announced the joint initiative with the Treasury to launch the “Funding for Lending” scheme that is hoped will aid the transmission of Bank policy to the wider economy.”