Interest rates will remain at 0.5 per cent for another month following the latest announcement by the Bank of England's monetary policy committee (MPC).

Private landlords will be among the property owners who were interested to know if the cost of borrowing would increase in May.

However, economic experts from various industries and businesses have indicated that the base rate is likely to stay at this historically low level for the rest of the year.

It has now been at 0.5 per cent since it dropped 0.5 percentage points at the start of March.

As the financial crisis has become deeper in recent months, the MPC has taken to releasing a statement with every interest rate announcement.

The committee said today that the global banking and financial system is still "fragile", even though the authorities continue to take the relevant measures to try and alleviate the situation.

"In the United Kingdom, GDP fell sharply in the first quarter of 2009. But surveys at home and abroad show promising signs that the pace of decline has begun to moderate,"it added.

Written by Claire Doyle

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