The Bank of England's Monetary Policy Committee voted unanimously this month to keep interest rates at a record low of 0.5 per cent and maintain its £125 billion (Dh746.58bn) quantitative easing programme.
Minutes to the June 3-4 MPC meeting published yesterday showed no arguments were advanced for either pumping more newly created money into the economy or scaling QE back. Policymakers agreed the medium term outlook had not changed since their May forecasts even though there had been some encouraging news over the month which could gather momentum by boosting confidence.
"Overall, the risk of a continued sharp contraction in output in the near term had receded somewhat," the BoE minutes said.
"However, there was no reason to conclude that the medium-term outlook for the economy, and thus inflation, had changed materially since the Inflation Report had been finalised."
The minutes are unlikely to settle the debate about whether the central bank will need to take more action to help pull Britain out of recession.
"No signs that the MPC is about to shift its bias towards looser policy any time soon," said Vicky Redwood, UK economist at Capital Economics.
Many policymakers believe it is still too early to say the economy has turned and the outlook may not be any clearer until towards the end of the year.
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