Minutes of June's meeting showed the Bank of England could raise rates before the end of 2014, but apparently the labor market slack has not been reduced enough to tighten policy.
In the three months to April of 2014, the unemployment rate decreased to 6.6 percent from 6.8 percent in the previous period, reaching its lowest level since early 2009. On the other hand, the inflation rate slowed to 1.5 percent in May, from 1.8 percent in April, the lowest rate in more than four years.
The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.