Bank of England Holds Interest Rates Steady

LONDON  – The Bank of England has held interest rates steady
at a record low of 0.5 percent – ending the year as it began – amid
concerns about Britain’s economic recovery despite recent stronger
than expected data.

The British central bank also kept its 200 billion pound ($315
billion) asset-purchase program on hold in Thursday’s announcement.

Economists say the nine-strong monetary policy committee is
likely waiting to see how the economy progresses in the New Year
when government spending cuts and a rise in sales tax are expected
to take a tighter grip.

The committee has been split three ways in recent months, with
one policymaker favoring a rate hike because of recent good
economic news, while another seeks an increase in asset purchases
to stave off any further downturn.