Monetary policy-makers at the Bank of England (BoE) will not increase benchmark interest rates soon, and when they do any rise will be staged, according to a senior executive at the bank.

Speaking on BBC radio this morning Spencer Dale, chief BoE economist and member of the BoE’s Monetary Policy Committee, said rates wouldn’t go up “any time soon”.

BoE interest rates have an impact on the cost of borrowing for people and businesses. Currently pegged at 0.5 per cent, loans such as mortgages are comparatively cheap.

"Interest rates will have to rise at some point but not yet,” said Mr Dale. “And when they do they will rise very gradually and cautiously to make sure we continue to nurture the recovery we have seen in output growth and employment."

In related news, the government has confirmed its estimate that UK economy grew 0.7 per cent in the third quarter of 2013.

But it did revise down growth for the whole of 2013 from 1.9 per cent to 1.8 per cent.