British Central Bank Leaves Rate Unchanged at 5.25 PercentThe Bank of England, Britain's central bank, will leave the country's interest rates unchanged at 5.25 percent this month, according to a decision announced by the bank's Monetary Policy Committee on Wednesday.Analysts believe there may be political reasons for holding back on the day before the general election. But economically, there is little incentive for rate cuts either, they say. Inflation is slowly creeping up, earnings growth is still strong, and consumer confidence is buoyant. All these factors could boost inflation. This year, the Bank of England has cut interest rates three times, from 6 percent at the start of the year to 5.25 percent. In the neighboring 12-nation euro zone, the European Central Bank recently cut its rates from 4.75 percent to 4.5 percent. |
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