Bank of England Cites Inflation and Keeps Rate Same

September 17, 2008 by Trader Rich

Sterling in currency tradingThe U.K. pound continues to struggle in forex trading as the British economy struggles. However, the economy is not likely to get help from Bank of England "stimulus" any time soon.

The Bank of England continues to keep interest rates the same, citing inflation as the main concern. Only David Branchflower continually calls for a cut to the rate.

For months, analysts have expected the Bank of England to cut rates, and it has yet to do so. And the story is not likely to change in October.

MarketWatch reports on the importance the Bank of England has placed on battling inflation:

"Most members judged that maintaining [the] bank rate at 5% this month was necessary if inflation was to be brought back to the target in the medium term," the minutes of the Sept. 3-4 meeting said. "That would continue to balance the upside and downside risks to inflation appropriately."