Mubasher: The Bank of England (BOE) on Thursday kept its key interest rates unchanged at 0.5%, in line with analysts’ forecasts.

Analysts previously said they expected the BOE to hike rates in its summer meeting.

The vote came in at seven in favour of keep interest rates unchanged, while to voted for a rate hike, arguing that borrowing costs should increase.

“The move suggests the BOE doesn’t think the UK economy is strong enough to handle higher interest rates, following the slowdown in growth at the start of this year,” The Guardian reported.

The BOE also kept its quantitative easing programme unchanged. It forecast that UK inflation would reach the 2% target in the coming two years.

Following the announcement, the GBP/USD reduced its gains to reach $1.3570. By 11:05 am GMT, the pair traded 0.19% lower to $1.3521, while EUR/GBP grew 0.44% to GBP 0.8786