London – 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, reports AP/UNB.
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.