BW: Bank of England to Hold Off Raising Rates on Faltering Recovery

June 04, 2011, 5:42 AM EDT

By Svenja O’Donnell

June 4 (Bloomberg) — The Bank of England will hold off increasing its benchmark interest rate next week as manufacturing and services surveys this week indicate the economic recovery is faltering.

The nine-member Monetary Policy Committee, led by Governor Mervyn King, will leave the key rate at a record low of 0.5 percent on June 9, according to all 55 economists in a Bloomberg News survey. It will also keep its bond-purchase plan at 200 billion pounds ($326 billion), said all 35 economists in a separate poll.

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