Bank of England, the central bank in the UK, has said that the UK economy will be in much better shape than expected by the General Elections, giving a major boost George Osborne.

Governor Mark Carney described the UK economy as one of the strongest in the developed world. He expects stronger growth, tumbling unemployment and lower inflation in the coming years. While speaking at a policy review, the governor said that the recovery has gained momentum. However, he warned that the recovery is not yet balanced and sustainable in the economy.

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.

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.