Mark Carney, the Governor of the Bank of England has said that the forward guidance on interest rates will "evolve" next month.

He dismissed expectations of an imminent rate rise in the UK and said that the Bank's Monetary Policy Committee and the policy makers will consider a range of options in the coming month for the strategy for the UK's central bank. He said that the level of stimulus will remain exceptional for some time and pointed out when it will be appropriate to increase rates, the hike will be gradual.

Mr Carney said: "That should help reassure British business that the path of interest rates will be consistent with a sustained recovery." He was speaking to the CBI at the World Economic Forum in Davos, Switzerland.

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.