Cost of borrowing stays at 5.25%

There was concern among those facing debt management problems that the bank’s monetary policy committee (MPC) would increase interest rates during March, which would have in turn increased repayment pressures.

Falling inflation levels and a difficult period for the stock markets recently is reportedly behind the latest rate decision, which retailers in the UK, as well as those seeking to clear debt were keen to see.

David Kern, economic adviser to the British Chambers of Commerce remarked: “While we acknowledge that inflation remains a potential UK danger, the risks have eased over the past month.”

Meanwhile, a number of observers suggest that interest rates will be increased again at some point during the first half of this year, in light of the fact that two of the nine MPC members voted to up the cost of borrowing in February.