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Bank of England keeps interest rates at record low

Bank of England keeps interest rates at record low

LONDON (AP) — The Bank of England has decided to keep interest rates at a record low 0.25 percent after slowing inflation damped the clamor for an increase.

The bank's Monetary Policy Committee voted to keep rates on hold amid uncertainty about Britain's economic prospects as it prepares to leave the European Union.

Some economists had called for a rate increase after inflation accelerated to 2.9 percent in May, well above the bank's target of 2 percent. But the rate dipped to 2.6 percent in June, easing pressure for a rise.

The decision came just after a report on Thursday showed Britain's dominant services sector recovered slightly last month. The Markit/CIPS services purchasing managers' index rose to 53.8 points in July, from a four-month low of 53.4 in June.

Updated : 2021-06-25 03:05 GMT+08:00