Bank of England keeps its main interest rate on hold at 5% in wake of big US Fed rate cut

Associated Press

LONDON (AP) — The Bank of England is keeping its main interest rate unchanged at 5% despite a big cut from the U.S. Federal Reserve, its first since the onset of the coronavirus pandemic more than four years ago. The decision Thursday was widely expected amid ongoing concerns about inflation within the bank’s monetary policy committee, particularly the elevated levels in the crucial services sector, which accounts for around 80% of the British economy. New inflation figures this week show that inflation overall in the U.K. held steady at an annual rate of 2.2% in August, still above the bank’s goal.