BoE keeps rates on hold at 5 pct

The Bank of England has kept official interest rates steady at 5 percent for the fourth month running as it grapples with opposing factors of slowing economic growth and rising inflation.

Thursday's decision confirms expectations by economists that policymakers have decided that the least worst option for now is to do nothing.

The bank had made two cuts earlier in the year — bringing the rate down from 5.5 percent — amid signs that the domestic economy was heading for a significant slowdown.

Many economists are now talking about the possibility of a recession. But lowering interest rates further to spur growth will likely also have the unwanted effect of pushing up inflation, which is already almost double the government's 2 percent target.

Back To Top

ECB, BoE leave interest rates unchanged

Associated Press

Tue Aug 5

0