The Bank of England has kept its main interest rate at a 16-year high of 5.25%, even though inflation has fallen to its target of 2%. In a statement, some policymakers on the bank’s nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon. The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the U.K.’s general election in two weeks time.
