BoE keeps key rate unchanged

BoE keeps key rate unchanged

LONDON (DPA): The Bank of England announced on Thursday it had left its key Base Rate unchanged at 6.00 per cent for the sixth month in succession. Analysts had been divided on whether rates would rise or remain unchanged.

The decision by the Monetary Policy Committee of Britain's central bank indicates a belief that inflation, running at 2.2 per cent a year in June, will remain within the government's 2.5 per cent target for the foreseeable future, analysts believe.

While inflation is the BoE's main concern, worries about the continuing strength of sterling during July against the euro will also have influenced its decision.

There are widespread worries about a negative impact on exports and inward investment from the strong pound, and major foreign investors, among them Nissan and Honda, have indicated concern over sterling's strength.