Bank of England keeps interest rates on hold as global uncertainties grow

LONDON – The Bank of England has decided to keep interest rates steady despite the economy’s relatively strong recovery as it looks for a stronger rise in wages and growth in key trading partners remains weak.

Policymakers voted Thursday to keep the key rate at a record low 0.5 per cent and to refrain from pumping money into the economy.

The bank has indicated it could start raising rates next year. But some economic indicators have softened recently. Inflation is muted, wages are not picking up yet, and a strong rise in house prices has abated.

On top of that, economic growth among trading partners, particularly in Europe, has slowed.

Investors will look to the Bank of England’s new economic forecasts published next week for more clues on when rates may rise.