Policymakers of the Bank of England held off on re-launching bond buying at the final meeting of Mervyn King as governor, in the wake of the recovery gaining traction and positive economic developments.

The Monetary Policy Committee maintained the size of quantitative easing at GBP 375 billion and the key interest rate at a record low 0.50 percent. The outcome matched economists' expectations.

King along with Paul Fisher and David Miles sought more stimulus over the last four months, but the majority rejected their call, citing the impact on currency, better economic growth and risk to inflation.

At the May meeting, most members said the effects of the previous round of asset purchases were still coming through and, together with the extended Funding for Lending Scheme, should continue to boost activity.

The minutes of the latest meeting to be published on June 19 is likely to show that King unsuccessfully continued his call for additional QE. King acted as the governor of the BoE for the past 10 years and cast his vote 194 times since BoE became independent in 1997.

Economists now expect to see some reforms after Mark Carney takes over as Governor in July. He is expected to initiate reforms on the interest rate path.

The current interest rate is the lowest since the central bank was established in 1694. IHS Global Insight's Chief UK Economist Howard Archer expects Carney not to take rates below 0.50 percent.

Giving more room for monetary policy adjustment, inflation fell to a seven-month low of 2.4 percent in April, from 2.8 percent in March. Nonetheless, the BoE forecast inflation to peak at around 3 percent in the third quarter of this year.

The International Monetary Fund in a report welcomed the monetary policy response of the BoE. In addition to considering further purchases of gilts, the lender said the central bank should provide assurance to households and investors that policy rates will be kept low until recovery reaches full momentum.

The economy dodged recession in the first quarter after gross domestic product expanded 0.3 percent. The bank forecasts the economy to expand 0.5 percent in the second quarter.

According to the recent Purchasing Managers' survey results, both services and manufacturing sectors strengthened sharply in May on new orders.

If the economic recovery fails to live up to the MPC's expectations, Carney may find it easier to push through even bolder action, possibly including greater focus on the pound, said Vicky Redwood at Capital Economics.

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