Bank of England keeps rates on hold, warns over inflation

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England kept its main interest rate at the record low of 0.1% but warned that inflation is set to be double its target rate by the end of this year largely as a result of a sharp spike in energy prices. The decision Thursday from the central bank’s nine-member Monetary Policy Committee was unanimous, though two members voted to start reining in a stimulus program intended to keep borrowing rates low in financial markets. The panel said in its meeting minutes that developments over the past month had “strengthened” the case for some tightening of monetary policy in order to meet the bank’s 2% inflation target sustainably in the medium term.