The Bank of England has decided to hold interest rates at 5.25 per cent.
It is good news for those with a mortgage, loan or credit card and will be welcomed by the majority of borrowers.
Many experts had been predicting a continued rise in base rates in the coming months, following a steep increase from 4.5 per cent to 5.25 per cent in five months.
However, a number of factors, namely falls in the stock market, commodity prices and a fall in inflation, have reduced the chances of an imminent rise.
The Bank of England’s Monetary Policy Committee (MPC) changes the base rate to keep inflation as close as possible to the government’s two per cent target.
Recent months have seen inflation running well ahead of this, sparking the quick succession of base rate increases.
Last month the MPC was split in its decision to hold rates and economists are predicting that March’s decision will also be a split one.
That does not bode well for the future, although two MPC members have come out indicated that they are strongly against any future rises.
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