The Bank of England’s Monetary Policy Committee (MPC) has voted eight to one in favour of keeping the Bank Base Rate at 0.5% for another month.

This is good news for mortgage borrowers as it means that mortgage interest rates are likely to remain at their record low levels for the time being.

All members of the Bank’s committee echoed their previous sentiment that when rates do begin to rise they are likely to do so at a gradual pace and a lower level than in previous interest rate cycles.

Again this is great news for borrowers, as it means that when interest rates eventually do rise, the Bank expects this to be slow and steady.

Barry Naisbitt, chief economist, Santander UK, said the decision had come as no surprise. “With inflation still slightly negative and uncertainties about global economic prospects continuing to be a feature of economic debate, the MPC was unlikely to change the decision taken last month.”

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