The British central bank, the Bank of England, leaves the interest rate unchanged at 5 percent.
The decision follows a decrease in the British interest rate in July and was in line with expectations. The market reaction was muted, but the British pound strengthened to an exchange rate of 1.33 dollars per pound, the strongest pound exchange rate in over two years.
Inflation in the British economy is on its way down, but the decline is being slowed down by price increases in the service sector and high upward pressure on wages.
"We should be able to lower interest rates gradually over time. But it is crucial that inflation remains at a low level, so we must be cautious and not lower too quickly and too much," says the British central bank governor Andrew Bailey about Thursday's decision.
