Bank of England keeps rates steady

Staff Writer
Columbus CEO

LONDON (AP) — The Bank of England has voted to keep its main interest rate at a record low 0.5 percent even as Britain's economy recovers at a brisk pace.

Policymakers also voted Thursday to refrain from pumping more money into Europe's third-largest economy.

Unanimity on the nine-strong policy committee crumbled last month after three years of consensus. Two members had voted for a hike, noting economic growth had accelerated to its fastest pace since 2007.

However, minutes of that meeting showed the majority of the committee remains convinced there is still not enough evidence of rising inflation or wages to justify an immediate increase.

Daniel Vernazza, analyst at UniCredit, says a drop in inflation to 1.6 percent in July from 1.9 percent in June offered further cause to delay a rate hike.