The Bank of England (BOE) on Thursday left its benchmark interest rate and monetary stimulus programme unchanged, as concerns about inflation overshadowed trepidation over a slowing economy.
The nine-member Monetary Policy Committee led by Governor Mervyn King today left the central bank's key lending rate at a record low 0.5%.
The BOE panel also kept the size of its asset-buying program at 325 billion pounds (US$523.2 billion), ending a second round of stimulus.
Both the moves were in line with economists' forecasts.
Today’s BOE decision reflects price-growth conundrum even as the UK economy continues to be hobbled by stiff budget cuts, high unemployment and threats from Europe’s debt crisis.
The BOE panel made its decision with new quarterly economic forecasts that will be published next week.
King, whose second term ends in June 2013, will hold a press conference on May 16 and face questions from lawmakers in Parliament in the coming weeks.
UK's industrial production falls 0.3% MoM in March