Bank of England puts interest rates on ice

at 5.0 percent on Thursday for the fourth month in a row as it mulled slowing economic growth and high inflation. The expected decision comes as the BoE, in line with major Western central banks, faces a dilemma between cutting short-term rates to boost growth, or lifting them to keep rising inflation in check. The European Central Bank left its key lending rate at 4.25 percent on Thursday as it battled with the twin threats of inflation and recession in the 15-nation eurozone. The US Federal Reserve left American interest rates at 2.0 percent on Tuesday, as the world's biggest economy continued to weaken. "We believe the Bank of England really had little option but to keep interest rates at 5.00 percent," said Global Insight economist Howard Archer. "The ever growing likelihood of recession calls for lower interest rates,... [read full story]