The Bank of England held its benchmark interest rate at a record low on Thursday, prompted by feeble wage growth, relatively low inflation and stagnation in the euro zone.
As expected, the central bank kept its base rate at 0.5 percent; its been at this level since March 2009. The bank also maintained its bond portfolio at £375 billion ($588 billion).
The policy decision came at a time when the U.K. is posting respectable economic growth, but inflation and wage growth remain below target. The central bank has stated that any future rate hike would be contingent on recovery in wage growth, which is at a fledgling stage—last month, Bank of England Governor Mark Carney said the U.K. was seeing "the start" of real pay growth.
Meanwhile, inflation remains below the central bank's 2 percent target—although the rate is far higher than those in many of the U.K.'s European neighbors. The U.K. Consumer Prices Index (CPI) grew by 1.3 percent in the year to October 2014, up from 1.2 percent in September.