LONDON, Nov 2 Reuters The Bank of England held interest rates at a 15year peak on Thursday and ruled out cuts any time soon as it fights to squeeze out of the system the highest inflation of the world39;s big rich economies.

Despite saying the economy was close to a recession and would have no meaningful growth in the coming years, the BoE reinforced its message that it would keep borrowing costs high.

The Monetary Policy Committee MPC voted 63 to keep Bank Rate at 5.25, repeating its September decision after 14 backtoback increases, as expected in a Reuters poll of economists.

The MPC39;s latest projections indicate that monetary policy is likely to need to be restrictive for an extended period of time, the British central bank said.

Britain39;s economy is already under strain from the runup of interest rates between December 2021 and August this year, with about half of the impact of those rate hikes yet to be felt.

Warning against complacency, Governor Andrew Bailey said inflation was still too high and that the BoE was determined to get it all the way back to its 2 target.

We will be watching closely to see if further increases in interest rates are needed, he said. But even if they are not needed, it is much too early to be thinking about rate cuts.

British government bond yields were down sharply as investors looked at the gloomy economic picture painted by the BoE and decided its next move in rates was likely to be lower.

The BoE will keep monetary…