Bank of England holds interest rates steady

[April 09, 2009]  LONDON (AP) -- The Bank of England has kept official interest rates on hold at 0.5 percent.

Thursday's decision was widely expected by economists. It is the first time the central bank has held steady since it started slashing borrowing costs in October to fortify Britain against the global economic downturn.

Economists had expected that rate-setters would be reluctant to make any further changes before gauging the impact of the series of cuts to this point. They are also wary of the negative impact another cut could have on troubled banks and their willingness to lend.

There have been tentative signs in recent weeks that the recession's grip may be loosening in Britain.

[Associated Press]

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