Private landlords and other homeowners can expect to see a 0.5 per cent interest rate in place throughout 2010, it would seem.

Benjamin Williamson, economist at the Centre for Economic and Business Research consultancy, has claimed that it is "extremely unlikely"the Bank of England's monetary policy committee (MPC) will change the cost of borrowing in the next 14 months.

Various reasons exist for this predicted outcome, he explained, before suggesting that it is "partly to counteract the expected sharp fiscal contraction"and also because borrowing costs will need to remain low as the economic recovery stays weak.

Landlords on certain mortgage deals will have been able to benefit from record low interest rates since March 2009 - the month that the MPC first brought the base rate down to 0.5 per cent.

The six MPC interest rate decisions since have resulted in no change, as the Bank has tried to keep consumer spending at suitable levels to hold up the economy.

Written by Claire Doyle
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