The Bank of England has kept its benchmark interest rate unchanged at 5 percent.

The decision Thursday confirms expectations by economists that policymakers are now more concerned about surging inflation than the slowing domestic economy.

It is the third consecutive month the bank has held rates steady. It had made two quarter-point cuts earlier in the year amid signs that the economy is heading for a significant downturn as the housing market stalls and consumer confidence falls.

However, further cuts could spur inflation, which is already well above the bank’s 2 percent target rate, higher and many economists now expect the next move from the bank to be a rise in interest rates.