UK's central bank, the Bank of England has indicated that it will keep its interest rates at the record low level of 0.5 per cent.

The Monetary Policy Committee of the central bank said that it is not looking to increase interest rates soon. .  Experts believed that the monetary policy committee (MPC) would keep the Bank's benchmark interest rate at 0.5 per cent as per its forward guidance policy.  The policy, initiated by governor, Mark Carney, states that the central bank will keep its rates at record low levels until unemployment falls to seven per cent or below.

Bank of England governor Mark Carney said that the inflation has fallen to levels that are near the target of two present indicating that the UK economy has recorded strong recovery.  He also said that the growth rate is still lower and it will be some time for the central bank to consider withdrawing stimulus in the UK.

Mark Carney has indicated that the central bank is likely to keep interest rates low even after risks of housing bubble or a fall in unemployment.