Bank of England holds interest rates at a 15-year high despite worries about the economy

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England has kept borrowing rates unchanged despite mounting worries over the state of the British economy. The central bank on Thursday left its main interest rate at a 15-year high of 5.25%, where it has stood since August following the end of nearly two years of hikes. While the interest rate increases have helped in the battle against inflation, the squeeze on consumer spending, primarily through higher mortgage rates, has weighed on the British economy. There’s little sign that rate cuts are on the agenda yet, with the bank’s governor saying interest rate policy would likely have to remain “restrictive for an extended period.” That’s unlike what the U.S. Federal Reserve signaled a day earlier.