LONDON, May 9: The Bank of England (BoE) kept its key interest rate at 4.75 per cent for the ninth month running on Monday at its first meeting since Tony Blair’s re-election as British prime minister.

“The case for leaving rates on hold was overwhelming this month” amid signs the British economy was faltering, said Audrey Childe-Freeman, economist at the Canadian Imperial Bank of Commerce. The widely-predicted move had initially been planned for last Thursday, but was delayed owing to Britons voting the same day.

As is the custom when no change is made to the “repo” rate — the rate of interest at which the BoE lends to commercial banks — it gave no explanation for the decision following a two-day meeting that began last Friday.

Market watchers must wait until May 18 for official comment when the central bank publishes minutes from the rate-setting Monetary Policy Committee (MPC) meeting.—AFP