Bank of England keeps interest rates steady

LONDON (AP) — The Bank of England has kept its main interest rate at a record low 0.5 percent and refrained from pumping more money into the economy with policymakers feeling little pressure to act amid subdued inflation.

The nine policymakers have been divided about whether it is time to raise rates, but with inflation at 0.5 percent, below the 2 percent target, pressure to do so has been muted.

Minutes to the previous meeting showed that the two rate-setters that had previously voted for higher rates joined the remainder in keeping borrowing costs unchanged.

Capital Economics economist Vicky Redwood says Thursday that a rate hike “still looks very unlikely, but could well come back on the agenda later this year once the risk of a prolonged period of falling prices has diminished.”

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