October 10, 2003	Friday	Sha’aban 13, 1424

LONDON, Oct 9: The Bank of England held its main interest rate unchanged at 3.5 per cent for a third straight month on Thursday, deciding against an increase despite evidence the British economy is picking up steam.

As is usual practice, no reason was given for the decision in a brief statement by the central bank, which will release minutes of the two-day gathering of its monetary policy committee (MPC) on October 22.

The maintenance of rates at their current 48-year-low had been widely expected by analysts, although many believe that galloping consumer debt and strong high street spending could mean a rise is on the cards during the coming months.

This expectation was boosted last week after revised government figures showed that the British economy had grown twice as fast as previously thought so far this year.

Gross domestic product grew by 0.6 per cent in the second quarter of 2003 from the previous three-month period, the figures showed, compared with an earlier estimate of 0.3 per cent.—AFP