LONDON (AFP) - – The Bank of England is holding its key lending rate at a record low level of 0.5 percent and maintaining its credit-easing plans amid signs of improvement in recession-hit Britain, it said on Thursday.

"The Bank of Englands Monetary Policy Committee today voted to maintain the official bank rate paid on commercial bank reserves at 0.5 percent," the BoE said in a statement after a two-day meeting.

"The committee also voted to continue with its programme of asset purchases totalling 175 billion pounds (194 billion euros, 287 billion dollars) financed by the issuance of central bank reserves."

Earlier this year, in March, the central bank slashed borrowing costs to the current record low level and launched a radical quantitative easing (QE) policy in an attempt to lift Britain out of recession.

Under QE, the bank creates money by purchasing bonds from commercial institutions in the hope of boosting lending to businesses and individuals.

The BoE announcement came ahead of a separate monetary policy decision from the European Central Bank at 1145 GMT.

The ECB, meeting in Venice, was expected to hold its key rate at a record low level of 1.0 percent as it also battles recession in the 16-nation eurozone.