Bank of England keeps rates unchanged

THE Bank of England has decided to keep its key interest rate at a record low of 0.5 per cent as it monitors the economy's strengthening recovery.

The Monetary Policy Committee also voted on Thursday to refrain from pumping more money into the economy. The bank has so far pumped STG375 billion ($A636.83 billion) into the economy since January 2009.

The decision had been widely expected because of the bank's new "forward guidance" policy, which new Governor Mark Carney introduced this summer.

The guidance offers markets, individuals and businesses a clear steer on where interest rates will be in coming months.

Carney has indicated rates will remain low until unemployment - currently at 7.7 per cent - drops significantly to a 7 per cent threshold.

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