Once again the bank of england base rate has remained static at 4.75 per cent. A decision widely expected by industry commentators.

This decision was predicted by most people and there would have shock and surprise if the committee had decided otherwise. However many observers are pointing at a further small increase before the end of the year, possibly next month.

This should not worry borrowers too unduly as it is seen as a short term holding measure with long term rates looking at being slightly lower than they currently are.

The indications or proof of this are the fixed rate terms being offered by many loan and mortgage lenders. Mortgage rates in particular are being offered on fixed terms for extended periods. Fixed rate mortgages for periods of 10 or 15 years would have been unprecedented a few years ago, but now several firms are offering them.

However, many experts are still advising caution when it comes to borrowing large sums. Rates can change over shorter periods and people should plan carefully so that they can still meet loan repayments if rates were to rise.

Interest rate decision was six to one - 16th August 2006

Bank announces surprise interest rates rise - 3rd August 2006