Bank of England keeps interest rates steady

Staff Writer
Columbus CEO

LONDON (AP) — The Bank of England has voted to keep interest rates steady in a release timed to fall after the general election.

Policymakers made the decision to keep interest rates at a record low of 0.5 percent at their May 7-8 meeting, but made their announcement Monday to avoid the election.

Britain's economy is one of the fastest-growing among developed nations and the bank is anxious to stoke the recovery.

But with the inflation rate at zero, there's little pressure to raise rates. Governor Mark Carney will also write Treasury chief George Osborne to explain why inflation is below its target 2 percent target.

Economists and investors will now look to the bank's quarterly inflation report later this week for clues on their thinking on the economic outlook.