In its Quarterly Inflation Report, governor Mark Carney played down speculation of an imminent rate rise by saying the base rate is likely to stay at its record low of 0.5% for “some time”.

When the Committee does start to raise rates, it will do so “gradually and to a level materially below its pre-crisis average”, Carney added

While the Bank governor said the economy is “edging towards” a time when a hike will be required, he emphasised the recovery has only just begun.

“We should not forget the economy has only just begun to head back to normal,” he said.

“Securing the recovery is like making it through the qualifying rounds of the World Cup. That’s a major achievement but it is not the ultimate goal.”

The report also noted that the availability of mortgage lending had improved, including at relatively high loan to value ratios, but warned the introduction of the Mortgage Market Review’s (MMR) recommendations may result in a dip in mortgage approvals.