"The latest UK retail sales figures are pretty good - as much for the upward revisions to past months as for July's figure, " said Vicky Redwood at Capital Economics.

BBC: Retail sales rise points to stronger UK economy

Vicky Redwood, UK economist at Capital Economics said the recovery still faced "significant obstacles ahead, with households still experiencing falling real pay and policymakers still struggling to get bank lending to rise".

BBC: UK economy avoids triple-dip recession

"The report both endorses market expectations that rates will stay on hold for the foreseeable future and suggests that more policy loosening will yet be needed, " said Vicky Redwood, chief UK economist at Capital Economics.

BBC: Bank of England sees 'worsened' economic outlook