The Bank of England kept interest rates at their record low level today.
UK borrowing costs have been held at 0.5% for more than a year as the Bank's Monetary Policy Committee (MPC) attempts to soothe the ailing economy. The committee also opted not to alter the £200 billion sterling it has spent so far on quantitative easing to boost the money supply.
Its decision comes in the wake of recent figures showing the UK moved out of recession faster than originally thought in the fourth quarter of 2009.
Recovery hopes were also raised this week by predictions from the Organisation for Economic Co-operation and Development (OECD) that UK output will grow at a faster pace than many other major international nations at the beginning of this year.
Strong manufacturing and services data have also added to the positive mood. But economists believe there are still challenges ahead for the healing economy.
The bank's MPC will also have considered the fall in February's rate of inflation to 3%, from 3.5% in January. This has eased fears about pressure on the bank for rate hikes as it looks to steer inflation to its 2% target.
Minutes from its last meeting showed some members were concerned that a weak pound and resurgent economy could keep inflation above target for longer. But others were more concerned that the slack in the economy, dragging over from the recession, could see inflation sink below the 2% level.
Analysts said the no-change decision was cemented this week after the British Prime Minister said on Tuesday that Britons will head to the polls on May 6.
Meanwhile, the ECB keep euro zone interest rates steady at 1% today also.
