moneysupermarket.com: Base rate held at 0.5%

Louise Cuming, head of mortgages at moneysupermarket.com commented: "The decision to keep the Bank of England base rate on hold at 0.5 per cent was no surprise. It is expected to remain at this level for the foreseeable future but the next move is likely to be upwards. We don't know when that will be - it will all depend on the success of quantitative easing - if the balance is not quite right, swift action to increase rates will be needed to prevent inflation. Anyone looking to lock into one of the competitive low rate fixed mortgages on the market at the moment should act now, before rates start to rise again.

"That said, equity is still king so the best deals are available to those with a sizeable deposit. Many of those with little equity in their homes who are looking to remortgage may be better off staying on their lender's standard variable rate for the time being. Borrowers must remain vigilant though and be prepared to act quickly if the environment changes.

Kevin Mountford, head of banking at moneysupermarket.com said, "The base rate has gone as low as it can. The recent rate cuts have frustrated many consumers as the returns on their savings have plummeted, but there's been little evidence of any improvement in the state of the economy. Savers will therefore be relieved that interest rates haven't been cut again.

"With banks fighting tooth and nail to attract retail inflow there are still some good savings products available despite the low rate environment. Savers can get in the region of four per cent for some of the most competitive fixed rate bonds, and there are some good early-bird ISA deals for the new season offering between three and 3.5 per cent interest."