The Bank of England has kept its base interest rate at a record low of 0.5 percent for the 17th consecutive month and left its asset purchasing program on hold.

The decision announced Thursday by the bank's Monetary Policy Committee had been widely expected by economists and analysts.

Policy makers are considering the impact of Prime Minister David Cameron's recently announced austerity measures as Britain's economy recovers slowly from a long recession. Fears of a "double dip" recession are currently outweighing concern about rising inflation.