"The MPC currently judges this bound to be close to, but a little above, zero," the BOE said.
Although the U.K. central bank acknowledged that recent economic data had been "slightly to the upside" relative to its forecast from August, it added that the economic outlook was still largely as it expected following the surprising vote in June to leave the European Union (EU), known as Brexit.
A full assessment of how the U.K. economy is adjusting to the uncertainty surrounding the future status of the U.K. outside the EU will take place as part of an update to forecasts in November.
The MPC was unanimous in its vote to maintain the bank rate and also unanimous in its decision to continue with its package of measures agreed in August that aimed to help the U.K. economy adjust to what its governor, Mark Carney, described as a "regime change" outside the EU.
It was the BOE's first rate cut since March 2009 and the package of measures included the purchase of up to 10 billion pounds of non-financial, investment grade sterling corporate bonds and a 60 billion pound expansion of its purchases of UK government bonds to a stock of 435 billion.
The BOE said its rate cut and package of measures had led to a greater than expected boost to UK asset prices, with market interest rates falling though some of this has been reversed recently due to the higher than expected UK data and a general rise in global bond yields.
The BOE said it had anticipated that business and consumer sentiment would bounce back following the immediate plunge in response to the Brexit vote, but acknowledged that it now expects less of a slowing in second half U.K. economic growth than it judged in August.
But it is more difficult to infer anything from recent data for the economic outlook for 2017 and beyond, the BOE cautioned.
In its August inflation report, the BOE forecast 2.0 percent growth in 2016, falling to 0.8 percent in 2017 and then an improvement to 1.8 percent in 2018. The Bank Rate was forecast to average 0.3 percent in the third quarter of this year and then be lowered to 0.1 percent by the third quarter of 2017 and remain at that level though Q3 2018 before rising to 0.2 percent in Q3 2019.
The U.K.'s Gross Domestic Product expanded by an annual rate of 2.2 percent in the second quarter of this year, up from 2.0 percent in the first quarter and 1.8 percent in the fourth quarter of 2015.
Inflation in August was unchanged at a rate of 0.6 percent from July, slightly below expectations and still well below the BOE's 2.0 percent target.
After plunging up to 15 percent in the wake of the Brexit vote to below 1.30 to the U.S. dollar, sterling has been trading above that level in the last month as much of the recent economic data has been better than expected.In August, for example, consumer confidence improved to minus 7 in after a sharp fall to minus 12 in July while consumer spending in the same month rose by 6.2 percent after 6.3 percent in July.
The Bank of England issued the following statement: