The Bank of England’s Monetary Policy Committee voted unanimously yesterday to hold the Bank Base Rate at its record low of 0.5%.

The announcement is great news for mortgage borrowers on a variable rate of interest as Base Rate influences wider mortgage rates. This means it’s unlikely they will see an increase in their mortgage pay rate in the near future.

The Bank reported that 12-month Consumer Prices Index increased to 0.5% in March but remains well below the 2% inflation target. This shortfall is due predominantly to unusually large drags from energy and food prices, which are expected to fade over the next year.

Ian Kernohan, economist at the Royal London Group, added: “The big issue is of course the Brexit vote, and the Bank makes explicit reference to this in the statement as a potential source of weaker economic activity in the first half of the year. The MPC has reiterated its expectation that rates are likely to rise at some point, but nothing will happen until the fog of Brexit clears.”