Bank of England likely to keep rates on hold

The Bank of England will make its decision on interest rates Thursday as recent data suggested that the domestic recession may have bottomed out after the economy shrank sharply in the first quarter of the year.

With the early _ but tentative _ signs of a recovery on the horizon, economists expect the British central bank to keep rates on hold at a record low 0.5 percent and continue its policy of expanding the money supply.

Bank governor Mervyn King has repeatedly downplayed suggestions that the worst is over, warning recently that the road to recovery will be longer and harder than anticipated.

"It is clear ... that the bank has major …