The Monetary Policy Committee left their interest rates at 0.50% - a record low. Also, improvements in economic conditions and higher inflation were main factors that caused the central bank to pause the APF program for the second month.

As yearly inflation in January rallied to a 14-month high of 3.5%, the MPC paused its program, yet it left the door open in case the program has to be extended depending on the conditions of the United Kingdom.

Meanwhile, the economy expanded in the fourth quarter by 0.3%. Although this is a slight expansion versus the third quarter contraction of 0.2%, but it shows that the sectors behind economic growth are doing their part into providing solid grounds for the UK to step out of the recession.

We cannot ignore the fragile labor market which is having a negative impact on economic conditions, since it is considered one of the main poles of the economic cycle; high unemployment rates means lower levels of spending and demand in the nation.

Jobless claims rose in January to the highest since 1997, while companies are still dealing with eroded profits and therefore still remain in no rush to begin hiring. Moreover, the widened budget deficit which means that the government has to start cutting their spending, while increasing their income, while instability dominates the financial and banking system.