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U.K. rates held at 6%
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January 11, 2001: 7:10 a.m. ET
Bank of England keeps rates unchanged for 11th straight month
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LONDON (CNNfn) - The Bank of England opted to leave its key interest rate unchanged at 6 percent Thursday for the 11th straight month, as expected.
Despite recent indications of slowing growth in the U.K. economy, the bank decided to stay its hand, maintaining the longest run of unchanged interest rates since it took on the independent authority for British monetary policy nearly four years ago.
The news boosted the London stock market, helping the benchmark FTSE 100 index tick up several points. Just after the announcement the index was 0.8 percent up from Wednesday's close at 6,100.9. Sterling was almost unchanged against the dollar at $1.4970.
Economists are convinced the next move in interest rates will be down, following a recent surprise decision by the U.S. Federal Reserve to lower its borrowing costs.
Fears of a sharp downturn in the U.S. economy prompted the Fed's move, and raised concerns the economic malaise could spread around the globe.
U.K. inflation has remained consistently below the bank of England's 2.5 percent target ceiling – it currently stands at 2.2 percent – giving the monetary authority freedom to maneuver.
Minutes of the December meeting of the nine-strong Monetary Policy Committee indicated that two members argued for an immediate rate reduction of a quarter of a percentage point.
The European Central Bank recently decided to leave its key rate unchanged at 4.75 percent.
Trade with America has represented a decreasing share of overall economic activity for both Britain and Europe over the past decade, and economists have calculated that a U.S. recession should not have a catastrophic impact elsewhere. However, further sharp tumbles in U.S. stock markets could unsettle equities around the world, throwing up follow-on problems for international economies. 
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Bank of England
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