The Bank of England announced it has left interest rates on hold at 0.5%.
The Bank has also kept the scale of its quantitative easing programme to boost the money supply unchanged at £375 billion.
The Bank of England left interest rates on hold at 0.5% today.
The Bank left the scale of its quantitative easing (QE) programme to boost the money supply unchanged at £375 billion.
UK borrowers should expect interest rates to return to their pre-recession levels of around 5 percent within a decade, according to the outgoing Bank of England deputy governor for monetary policy.
Sir Charlie Bean who leaves his job tomorrow, said market expectations that the first increase in interest rates would come at the turn of the year were "reasonable".
He told Sky News: "The market has rates going up to 2.5% over next three years. That seems like a broadly sensible judgment."
Sir Charlie admitted that in the run-up to the crash, economists were "not sufficiently cognisant of the risks building up in the financial system" but insisted the economy is far more resilient than when he arrived at the central bank in 2000.
Interest rates are likely to hit 5% within a decade, according to the outgoing Bank of England deputy governor for monetary policy. Sir Charlie Bean said it would be "reasonable" to expect borrowing costs to return to pre-recession levels in the long term - between five to 10 years.
Homeowners have enjoyed a historically low 0.5% base rate for five years but the level has caused misery for savers. Sir Charlie told Sky News: "It might be reasonable to think that in that long term you would go back to 5% but it's probably quite a long way down the road."
Earlier this week, Bank of England governor Mark Carney urged people to focus on the "big picture" rather than obsessing about when interest rates will start to rise.
It followed accusations that he had been behaving like an "unreliable boyfriend" by hinting at a rise this year, before appearing to back-pedal.
Interest rates are "likely to remain low for some time" but the UK has "edged closer" to a rise, Bank of England Governor Mark Carney told ITV News' Economics Editor Richard Edgar.
He added that "today is not the day" to rise interest rates and the exact timing of the first rise "will be a product of the evolution of the economy".
The Bank of England is to deliver a latest forecast for the UK economy today, with any improvement could signal that interest rates may increase earlier than expected.
Experts have pencilled in a hike in the cost of borrowing from its historic low of 0.5% for the spring of next year.
Surging house prices are unlikely to have any direct effect on interest rates for the time being as the Bank of England has said it would rather use other tools at its disposal to cool a potential property bubble before having to raise rates to do so.
Business leaders have said political uncertainty about the outcome of the next General Election remains a "major risk to the recovery".
The Confederation of British Industry (CBI) urged politicians to push ahead with boosting the supply of homes and taking decisions on major infrastructure projects.
The major parties need to show they would "stick with what is working" after next year's election, the CBI's chief policy director Katja Hall said, urging them against costly "political positioning".
She added: "(Positioning) must not be allowed to stifle investment, whether it's an unrealistic immigration target, unjustified interventions into specific markets, flirting with leaving the European Union, delaying vital long-term infrastructure projects or restricting labour market flexibility."
Business leaders have predicted interest rates will need to rise early next year as they issued a warning about "unsustainable" house prices.
The Confederation of British Industry (CBI) expects a rise of 0.25 per cent in the first three months of 2015, from 0.5% to 0.75%.
The business lobby group previously predicted the Bank of England would have to start raising rates in the third quarter of next year - but has now brought that forward to the first quarter.
The CBI also raised its forecast for the UK's gross domestic product forecast for this year from 2.6% to 3%.
Director-general John Cridland said property values were expected to rise by 8.2% this year, and 5.1% next.
But he warned: "We have to remain alert to the risks posed by unsustainable house price inflation, and the (Bank's) Financial Policy Committee is poised to act when necessary."
The Bank of England kept interest rates on hold at 0.5% today.