The Bank of England on Thursday kept its key interest rate at a 16-year high of 5.25 percent despite slowing UK inflation, opting against a cut before Britain's election.

While UK inflation slowed in May to a near three-year low of 2.0 percent, matching the central bank's target, the BoE had been expected to maintain the status quo to avoid appearing to take sides ahead of the general election on July 4.