September 04, 2008
BoE holds rates steady
The Associated PressThe Bank of England has kept official interest rates unchanged at 5 percent at its monthly rate-setting meeting despite a looming domestic recession.
The central bank's decision on Thursday had been widely expected by economists given its mission to keep inflation at the government's 2 percent target rather than to stimulate growth.
Inflation is currently running well above that level — at 4.4 percent — thanks in part to imported high energy and food prices.
But many economists expect interest rates to come down before the end of the year as inflationary pressures ease, paving the way for the bank to act on its concerns about the state of the economy.