Bank of England keeps interest rates on hold despite solid growth in UK economy

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The Bank of England has opted to keep its main interest rate on hold at a record low 0.5 percent despite the ongoing strength of the U.K. economy.

The decision was expected. However, there is a growing view that the central bank will start raising rates soon, with some economists predicting the first increase later this year.

Bank of England Gov. Mark Carney has said rate raises — when they come — will be limited and gradual.

Further clues as to when interest rates may start to rise may emerge next week when the bank publishes its quarterly economic projections.

Despite the solid growth over recent quarters, the U.K. economy has only just surpassed the economic output it recorded in 2008 before the global financial crisis really bared its teeth.