Private landlords and other mortgage holders will hear whether the cost of borrowing changes tomorrow.

The Bank of England's monetary policy committee (MPC) will announce July's interest rate decision at noon, as it does on the Thursday of the first full week every month.

Michael Baxter, an economist at financial data research group Defaqto, has predicted that the MPC will vote to keep the base rate at 0.5 per cent for the fourth consecutive month.

It was brought down to this level in March 2009 and has remained there ever since.

This came after the cost of borrowing was in excess of five per cent during the summer of 2007.

Mr Baxter said that there is no reason for the rate to be reduced any further from its current record low percentage.

"It is certainly way too early for it to increase the rate of interest,"the financial expert explained.

Written by Sarah Field

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