10 April 2007
The Bank of England's Monetary Policy Committee (MPC) has announced interest rates will remain at 5.25% for another month.
Last week's decision means there has been no change in the base rate since the 0.25% rise witnessed in January.
An interest rate freeze is positive news for those looking for a secured loan, although after three such decisions in a row, many economists are anticipating an interest rate rise in May.
Stephen Leonard, Director of Mortgages at Alliance & Leicester, commented: "General consensus within the industry pointed to the base rate staying the same this month but many now expect a hike in May.
"The money markets have been pricing in at least one rise in the base rate this quarter, with rates potentially being cut later in 2007, or in 2008, as inflation drops back towards the MPC target of 2%."
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, added that "it's hard to see the MPC waiting too much longer before another hike".
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