Interest rates unmoved

The Bank of England’s Monetary Policy Committee (MPC) has voted to freeze interest rates for the month of March.

As a result, there will be no change from the current rate of 5.25 per cent, a welcome relief to those who have borrowed heavily on credit cards and loans.

Those in debt have been feeling the pressure recently, with regular increases from 4.5 per cent just five months ago.

Reaction to the decision, from the Royal Institution of Chartered Surveyors (Rics), described the announcement as "the correct decision" due to "recent volatility in the financial markets".

However, a Rics spokesperson issued a note of caution: "Respite for financially stretched households could prove short-lived as a return to calmer financial markets will prompt at least one further interest rate hike to 5.5 per cent as the economic background is healthy."

Minutes for the meeting, due to be published on March 21st, are expected to reveal a split vote among the members of the MPC.

As a result, experts envisage a further interest rate rise will not occur until the middle of the year.