King Gains Ammunition From Data as BOE Keeps Rate at Record Low

Bank of England Governor Mervyn King has gained more ammunition in his battle to keep interest rates at a record low after reports suggested the economy isn’t yet strong enough for a withdrawal of emergency stimulus.

The bank kept its benchmark rate at 0.5 percent today, as forecast by all 43 economists in a Bloomberg News survey. It also maintained its bond-purchase program at 200 billion pounds ($330 billion). King defeated calls last month from three policy makers to tighten policy to tame inflation that’s twice the central bank’s 2 percent target.