London  - The Bank of England Thursday kept interest rates on hold at 5 per cent amid signs of a weakening economy and rising inflation.

The central bank cut interest rates by 0.25 per cent earlier this year, but analysts said the key lending rate was expected to stay at the present level for the rest of 2008.

Inflation, fuelled by rising food and energy prices, hit 3.3 per cent in June. (dpa)