BOEThe Bank of England has left interest rates unchanged at 0.5% and made no increase to its quantitative easing.

The decision has come as no surprise as the Bank has said it will not consider a rate rise until the unemployment rate falls below 7%.

The Bank of England’s Monetary Policy Committee (MPC) has kept interest rates on hold at 0.5% since March 2009.

Under the Bank’s policy of forward guidance, brought in under new governor Mark Carney, it has said it will not increase interest rates until the rate of unemployment has dropped below 7%.

When the Bank first announced this, in August this year, it said it did not expect this to happen until 2016.

However, many analysts believe that the Bank will have to act sooner than that – possibly in 2015 – given the increasing strength of the UK’s economy.

The last set of unemployment figures showed the jobless rate had dropped to 7.7% in the June-to-August period.

The economy grew by 0.8% in the third quarter of the year, and recent economic surveys have indicated that growth remained strong in October.

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