LONDON (AFX) - The Institute of Directors said the Bank of England's decision to leave interest rates at 5.25 pct is sensible as the economy is "undoubtedly" showing signs of buoyancy. "The retail sector and the housing market, stimulated by the recent cuts in interest rates, are far from being depressed. Manufacturing output, on the other hand, is effectively in recession. But, on balance, the Monetary Policy Committee's decision to leave rates on hold seems sensible," head of the policy unit Ruth Lea said. If the economy deteriorates, the BoE can still cut interest rates as "it has some weapons in its armoury", she added.