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Britain's central bank has also decided to keep its key interest rate at a record-low, 0.5 percent. It was widely expected by analysts, due to the risk of a slowdown in Britain's economic recovery.
The Bank of England has held the interest rate at 0.5 percent, since the depths of the recession in March 2009. Last month, one policy maker voted for an increase to 0.75 percent because of on-going above-target inflation. But the rest of the bank's monetary policy committee are waiting for updated economic forecasts in August.
UK inflation remains at 3.4 percent, well above the central bank's 2 percent target.
- ECB keeps rates on hold at 1% 2010-07-09