| Bank keeps rates on hold |
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| Thursday, 07 August 2008 | |
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The Bank of England has kept interest rates on hold at 5%
The decision was expected as the downturn in the economy, which seems to be gathering pace, had to be balanced against the risk of rising inflation. The Monetary Policy Committee's primary goal is to keep inflation at 2% and it currently stands at 3.8%. Although the majority of members voted to hold rates last month, one supported a cut, while another backed an increase. |



