A month after cutting interest rates by 25 basis points, BoE holds amid rising debt, recovery signs.
August 7, 2003: 7:34 AM EDT
LONDON (Reuters) - The Bank of England kept interest rates steady Thursday at their 48-year low of 3.5 percent, as expected, amid record consumer debt and signs that the economy is picking up steam.
All 42 analysts polled by Reuters last week had predicted the central bank would keep rates steady at the end of its two-day meeting one month after it had cut borrowing costs by 25 basis points.
Strong economic data since that poll had heightened expectations that the BoE's Monetary Policy Committee would keep rates at that level for fear a cut would encourage spendthrift consumers to take on even more debt, storing up problems for future.
The BoE offered no statement with its decision. It will publish its updated quarterly inflation and growth forecasts next week.
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