Bank of England lowers key interest rate

LONDON, Feb. 7 (UPI) -- The Bank of England lowered its key interest rate by 25 basis points to 5.25 percent Thursday to offset fears economic growth is slowing in Britain.

"The prospects for output growth abroad have deteriorated and the disruption to global financial markets has continued," the bank's Monetary Policy Committee said in a statement.

Britain's consumer price index rose 2.1 percent in December, close to the government's target of 2.0 percent, "but higher energy and food prices are expected to raise inflation, possibly quite sharply in the coming months," the statement said.

The lower rate should raise the cost of imports in Britain, which last lowered interest rates in December.

Even with the reduction, the 5.25 percent, the interest rate is the highest among the G7 countries