The Bank Base Rate has been at its historic low level of 0.5% since March 2009.

On Monday, Citi predicted interest rates in the UK will remain at historic lows for four more years as the economy struggles to recover. The investment bank expects the Bank to keep interest rates at 0.5% until mid-2017 – a year longer than originally expected.

While this prediciton is predicated on the negative message that economic growth in the UK is set to remain weak, it is nevertheless good news for mortgage borrowers.

The MPC is also holding fire on its Quantitative Easing (QE) programme, keeping it at £375bn.

The QE programme involves buying assets – usually Government bonds – using money it has simply created out of thin air. The institutions selling those bonds (either commercial banks or other financial businesses like insurance companies) then have “new” money in their accounts, which boosts the money supply.