Europe News

BoE holds fire after growth forecast upgrades

Austerity dragging less on UK: Economist

The Bank of England (BoE) left its main interest rate and monetary stimulus program unchanged on Thursday, as the country's finance minister delivered his bi-annual state of the economy address.

The central bank's Monetary Policy Committee opted to keep the bank rate at a record low of 0.5 percent, and left its asset purchase total at £375 billion ($613 billion).

Click here for our live blog covering the Autumn Statement and Bank of England rate decision

The inaction was expected by the BoE, now led by Governor Mark Carney, who has said previously that the bank will not consider raising interest rates until unemployment falls to 7 percent.

The monetary policy decision came as U.K. Chancellor George Osborne delivered his Autumn Statement to Parliament. Osborne revealed significantly higher near-term growth forecasts for Britain's economy by the independent forecaster the Office for Budget Responsibility.

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