Base rate is held

The Bank of England's Monetary Policy Committee (MPC) has announced that the base rate of interest will remain unchanged in March.

The move was widely predicted by analysts and has come as no surprise to the markets.

However, mortgage borrowers can expect another interest rate cut soon, following the reductions in December and February.

Iain McMillan, director of the Confederation of British Industry Scotland, said that he would like to see another rate cut as soon as possible.

"The MPC is clearly aware of the intensifying short-term inflationary pressure from rising food and energy costs, and of the need to balance this against the current weakening of the UK economy," he said.

"The slowing economy and the implication for inflation further out does suggest that, following February's decision, another cut in interest rates will be needed and we would expect it sooner rather than later," continued Mr McMillan.

The next base rate decisionwill be made on April 10th.

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