Bank holds base rate - again.

People looking to set their personal financial budgets will be taking note of the Bank of England's decision to keep interest rates at their historically low level of 0.5 per cent for an unprecedented 18 months in a row.

Although the move was widely expected, the reasons behind it are likely to be closely examined by economists looking to get a feel for where the economy is heading.

It's thought that some members of the Bank's Monetary Policy Commission (MPC), which is responsible for setting the rate, are worried about inflation.

The MPC also agreed to carry on with its £200 billion quantitative easing scheme, with some analysts expecting an expansion of the program in the near future.

Director of Atlantic Financial Management Kevin Still says, "Low interest rates for homeowners remains good news where they would otherwise have debt problems because increased mortgage debt repayments would mean that they would struggle to meet contractual payments on unsecured debts like credit cards and other unsecured borrowing."

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