Bank of England Keeps Interest Rate Steady at 4.0 Percent

Outlooks for further cuts later this year are unclear due to growing concern about an emerging inflation.

The Monetary Policy Committee voted 7 to 2 to keep interest rates unchanged.

Guidelines for future cuts remain unchanged that they will be They retained the guidelines "gradual and cautious" and "depending on the extent to which the underlying deflationary pressure continues to ease".

"Even though we expect inflation to return to our target of 2 percent, the danger is not over yet", said the central bank chief Andrew Bailey in a statement in connection with the decision.