The Bank of England makes no change to monetary policy, as expected - the interest rate is still at a record low and Quantitative Easing is at the same levels.
But the Bank has warned that inflation will rise in the near term but will fall back later.
The Bank of England (BoE) has kept the interest rate at 0.5%.
The rate has remained unchanged since March 2009.
The rate decision is the first since Mark Carney took over as Governor of the Bank of England on Monday.
The Bank also left the scale of its quantitative easing (QE) programme to boost the money supply unchanged at £375 billion.