Bank of England begins meeting, no change expected

LONDON (AP) - The Bank of England began its two-day rate setting meeting Wednesday amid downbeat economic news of more job cuts in the construction industry and souring confidence. Most economists expect that while inflation is a concern, the central bank will keep interest rates on hold. That would leave the benchmark lending rate at 5 percent when the British central bank announces its monthly decision on Thursday, providing little relief to struggling homeowners and prospective buyers. Bovis and Redrow became the latest British home builders to announce big cuts to their work forces on Wednesday, with staff numbers to be slashed by 40 percent at each company compared to levels at the start of the year. With the property industry reeling from falling house prices and the withdrawal of many affordable mortgages from the... [read full story]