The European Central Bank and the Bank of England Thursday each kept their key, short-term interest rates the same, at 4% and 5%, respectively, the banks announced. Economists surveyed by Bloomberg News had expected both the ECB and BOE to maintain current interest rate levels.

In its previous meeting, the ECB had kept its benchmark interest the same at 4%; meanwhile, the BOE lowered its key rate by 25 basis points to 5% from 5.25% on 10 April 2008.

In contrast, the U.S. Federal Reserve has lowered its key, short-term interest rate five times, or by 325 basis points, to 2% from 5.25%, as it attempts to jump-start a U.S. economy dragged to near-stall levels by its worst housing slump in a generation.

Further, for at least the time being, the ECB and BOE do not appear to be concerned about the euro's and the pound's steady, two-year rise versus the dollar. The euro traded at $1.5383 and the pound at $1.9583 in Thursday morning trading; each is about 4% off its 2008 highs.

BOE rate hold: a surprise

London-based economist Mark Chandler told BloggingStocks Thursday the BOE's stand-pat decision was a bit of a surprise, in his interpretation. "The central bank knows that growth is slowing, and now it looks like we're catching up with America in the housing matter, so I don't rightly know why they didn't move rates 25 basis points," Chandler said. "Inflation is slightly higher, but the balance right now has to be toward the danger of recession."

Conversely, Chandler added that the ECB's stand-pat stance was par for the course. "[ECB President] Trichet is as hawkish as they come, so no cut was expected," Chandler said. "The continent [Europe] is much more sensitive to oil price rises than the U.K. so the ECB will be well behind the Bank of England in the easing cycle."

Still, Chandler believes the growing consensus among economists in the U.K. and in the EU is that the macro-level trends suggest the economic slowing is approaching Europe. "Globalization means an increasing portion of Europe's economic activity is with Asia, but you still can't take America out of the equation and not see Europe hurt," Chandler said. "America has a $14 trillion GDP so a recession there means almost certainly a recession in the U.K. and Europe. That means interest rates here have to be lowered at some point."