BUSINESS

Bank of England keeps interest rates steady, refrains from injecting more stimulus in economy

04/04/2013 07:19 EDT | Updated 06/04/2013 05:12 EDT
LONDON - The Bank of England has kept interest rates unchanged and refrained from injecting more stimulus into the economy, despite concerns for the lack of growth in Britain's economy.

The Monetary Policy Committee's decision Thursday follows gloomy data this week on construction and manufacturing activity, with March readings coming in worse than expected.

With public sector borrowing already high, the government is refusing to increase spending or cut taxes significantly. So much of the burden to revive the ailing British economy has fallen on the Bank of England.

In an effort to stimulate growth in the wake of the financial crisis, the central bank has kept its key interest rate at a record low 0.5 per cent since March 2009 and pursued a monetary stimulus program at 375 billion pounds.