The Bank of England has held interest rates at 0.5 per cent and will keep its stimulus programme of quantitative easing unchanged.
First quarter gross domestic product figures revealed a growth of 0.3 per cent, which has been cited as a reason for less quantitative easing.
The decision to keep things unchanged is not a complete surprise, with many analysts believing there will not be any change until July when the new governor Mark Carney has settled into his new role.
There are signs the UK economy is improving, with recent figures from the Office for National Statistics showing industrial output increased by 0.7 per cent in March from the previous month, a larger rise than was predicted.
Manufacturing output also rose by 1.1 per cent, while recent sector surveys have found conditions are improving in the service, manufacturing and construction sectors.
By Asim Shah