April 7, 2006	Friday	Rabi-ul-Awwal 8, 1427

LONDON, April 6: The Bank of England on Thursday held its key interest rate at 4.50 per cent for the eighth month in a row, the central bank announced. The BoE decision at the end of a two-day meeting was widely predicted by economists and came before the European Central Bank was expected on Thursday to keep eurozone borrowing costs at 2.50 per cent.

As is customary when no change is made to the BoE “repo” rate — the rate of interest at which the central bank lends to commercial banks — its Monetary Policy Committee (MPC) published no reasoning behind its decision.

Central bank watchers must wait until April 19 for official comment, when minutes from the two-day deliberations are released.

The MPC, which normally comprises nine members, was reduced to eight this month after senior member Richard Lambert left his post on March 23, ahead of becoming the new head of the Confederation of British Industry — the country’s biggest employers body — on July 1.—AFP