7 June 2007
The Bank of England has held off on raising interest rates any higher today after last month's increase of 0.25%.
Borrowers can breathe a sigh of relief with the revelation that the Bank's Monetary Policy Commission (MPC) will keep rates as they are until mid-July.
Homeowners and borrowers across the country have been hit hard in recent months with the bank's decision to raise interest rates four times since August 2006 in a bid to stabilise inflation.
Economists warn, however, that although borrowers may see some respite in June, July could see interest rates rise to 5.75%.
Howard Archer, Chief UK and European Economist at Global Insight, said: "The Bank of England's decision to leave interest rates unchanged may well prove to be only a temporary reprieve.
"We suspect that another 25 basis point hike to 5.75% could arrive as soon as July."