Bank of England building
The Bank of England has held interest rates at 0.5 per cent and the asset purchase programme at £375bn.
The base rate has been unchanged since March 2009 while the most recent addition to the asset purchase programme was made in July 2012.
The decision was made by the Monetary Policy Committee during its meeting on 6-7 February.
The committee said: "The MPC continues to judge that the UK economy is set for a slow but sustained recovery in both demand and effective supply, aided by a further easing in credit conditions- supported by the Bank's programme of asset purchases and the Funding for Lending scheme- and some improvements in the global environment. But the risks are weighted to the downside, not least because of the challenges facing the euro area."
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It also said inflation could rise further in the near term and may remain above its two per cent target for the next two years.
A quarterly inflation report will also be published by the Bank on 13 February.
However, the committee said it "stood ready" to provide additional stimulus if warranted by the outlook for growth and inflation.
Incoming Bank of England governor Mark Carney has been speaking to MPs today for a 'pre-appointment hearing' before he takes the position in July.
Further details of the decision will be given in the minutes of the MPC which are published on 20 February.
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