Bank of England keeps monetary policy on hold as economy shows signs of recovery

LONDON – The Bank of England has decided to leave interest rates steady amid growing signs that Britain’s economy is on the mend.

Policymakers kept rates at a record low 0.5 per cent and opted to refrain from injecting more monetary stimulus into the economy after their meeting Thursday.

The decision was widely expected, though analysts say the central bank might have to consider tightening its policy sooner than it had expected.

Governor Mark Carney said last year that the bank will reassess its policy when the unemployment rate hits 7 per cent. The rate has since then dropped quickly, to 7.4 per cent at last count, as Britain enjoys one of the stronger recoveries in Europe. Carney, however, notes that the bank will not act automatically when the threshold is reached.