Bank of England holds rates steady

LONDON — The Bank of England has kept its benchmark interest rate unchanged at 5 percent.

The decision Thursday confirms expectations by economists that concern about rising inflation would stop the central bank from making another cut.

It was the second consecutive month the bank has held rates steady. It had made two cuts earlier in the year — bringing the rate down from 5.5 percent — amid increasing signs of slowing domestic growth.

However, warnings that the economy is heading for a significant downturn as consumer confidence falls and the housing market stalls have been overshadowed by inflation surging above the bank's 2 percent target.