The Bank of England’s Monetary Policy Committee has said that the UK is facing improving prospects with improving business and consumer confidence.

While the committee said that it was, “too soon to draw a firm conclusion from recent labour market outturns about the extent to which productivity would increase", minutes from the meeting revealed optimism surrounding the UK’s economic prospects, with a fail in the unemployment rate to 7.7 percent, and expectations of overshooting a unemployment target of 7 per cent within three, years now deemed as probable.

The committee decided that interest rates should remain static at 0.5 per cent with a unanimous vote upholding the current rate.

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