The Bank of England has said that the economy has not sufficiently stabilised to justify a rise in interest rates.

The Bank had said that it would not consider raising interest rates until unemployment had fallen to 7%. It is predicted to hit 6.5% in early 2015.

Governor Mark Carney said that the Bank would be using a broad range of measures in order to influence its decisions on any future rise.

“The Monetary Policy Committee (MPC) has taken a cautious approach,” said Mark Carney, the Bank’s Governor. “We’ve learned that as yet the recovery is neither balanced nor sustainable. A few quarters of above trend growth driven by household spending are a good start but they aren’t sufficient for sustained momentum. The MPC will not take risks with the recovery.”