The Bank of England (BoE) left its monetary policy unchanged on Thursday but looks increasingly likely to become the first central bank in a developed nation to hike interest rates since the global financial crash of 2008.
The BoE left interest rates at a record low of 0.5 percent and its asset purchase target unchanged at £375 billion ($629.6 billion) as expected on Thursday.
Yields on benchmark 10-year U.K gilts were relatively unchanged, holding steady at 2.624 percent. Sterling also showed little movement against the dollar, ticking slightly lower to $1.6780 after starting Thursday's session at around $1.6788.
However, despite policy not changing on Thursday investors are increasingly anticipating a move by the Bank in the first half of next year. BoE Governor Mark Carney said as much in an interview with a local newspaper last week.
Speaking to The Northern Echo, he said that interest rates could rise ahead of the next General Election in the U.K., due in May 2015, but he wants to see more job creation before he intervenes. The Bank's main interest rate is the benchmark for all sorts of mortgages and loans in the U.K. and indicates how much people pay to borrow cash. It currently stands at 0.5 percent.