The Bank of England has kept interest rates on hold at 0.5%.
Interest rates have been at a historic low of 0.5% since March 2009, although the UK economy officially came out of recession during the last quarter growing 0.4%.
The Bank of England Monetary Policy Commission also opted not to resume its policy of quantitative easing, which remains at £200bn to date.
David Kern, chief economist at the British Chambers of Commerce, said: "We expected and support the MPC’s decision to continue with a holding approach. But, it should consider new techniques aimed at improving the effectiveness of the quantitative easing programme.
“A fragile recovery is now under way, but the upturn must be nurtured to counter risks of a relapse. Despite the upward revision to GDP in the fourth quarter of 2009, and the prospect of positive growth in the first quarter of this year, the economy remains weak and vulnerable to a setback. Businesses remain under pressure and there is absolutely no room for complacency.”
