Bank holds rates as expected

The Bank of England left its key rate at 5% for the second straight month on Tuesday.

The decision was widely expected after the Bank said in its May Inflation Report that inflation would soar well above the 3% upper limit of its inflation target range in the coming months.

"In principle the decision is no surprise," Marc Ostwald, an analyst at Insinger de Beaufort, an advisory firm, told Central Bank News.

"Falling house prices and an ever tighter rein on consumer lending clearly pose risks g