LONDON – The Bank of England has kept interest rates steady as it remains cautious about Britain’s economic recovery.
The bank’s benchmark interest rate stands at a record low level of 0.5 per cent, where it has stayed for over five years. The central bank’s policymakers also declined Thursday to pump more money into the economy.
Governor Mark Carney has been cautious despite signs that the country’s economy is strengthening, with headline figures for growth and unemployment improving faster than predicted.
He has insisted that progress must be made in reducing the amount of spare capacity in the economy. Besides that, Carney has made it clear that even when rates rise, they will do so only gradually.
The British economy is still smaller than it was in 2008 following the global financial crisis.