LONDON -- The Bank of England kept its main interest rate unchanged at the record low of 0.1% and said Thursday that it expects the British economy to reach its pre-pandemic level by the end of the year.

       In a statement accompanying its decision, the central bank's rate-setting Monetary Policy Committee said “a waning impact” from COVID-19 would boost demand growth over the rest of the year.

       The bank projected further out that growth is expected to slow toward more normal rates, partly reflecting lower government spending as many pandemic support programs end.

       The monetary committee also appeared sanguine about higher inflation, saying that currently elevated global and domestic cost pressures will prove "transitory."