Members of the Monetary Policy Committee (MPC) voted to keep rates at their historical low – where they have remained since March 2009 – and maintained the Bank’s quantitative easing (QE) programme at £325bn.
The decision to hold fire on additional stimulus measures comes as various economic indicators suggest the recovery is gaining momentum.
Surveys pointing to a pick-up in the services and construction sector have fuelled hopes the UK will avoid a technical recession – defined as two successive quarters of negative economic growth.
UK GDP contracted 0.3% in the final quarter of 2011, up from a previous estimate of -0.2%.
Most economists expect the UK to register modest economic growth in Q1.
But against this positive backdrop, the influential OECD recently predicted GDP fell 0.1% in the first quarter of this year – a projection which, if correct, would plunge the UK back into recession.
Minutes from the MPC’s March meeting revealed two members called for a further £25bn of stimulus.
In February, the Bank pumped an additional £50bn into the economy. This followed a £75bn increase in October.
