King Diverges Further From Europe as BOE Keeps Rates on Hold

Bank of England Governor Mervyn King’s monetary policy diverged further from the rest of Europe today as officials kept record-low interest rates to aid the recovery and guard against threats from the Greek crisis.

The nine-member Monetary Policy Committee held the benchmark rate at 0.5 percent in London today, as forecast by all 51 economists in a Bloomberg News survey. The Frankfurt-based European Central Bank raised its key rate by a quarter point for the second time this year.