“It has come as no surprise that the Bank has opted to hold the rate at 5 per cent. The committee is still facing a tricky situation whereby inflationary pressure is posing a serious threat to the UK economy, yet Brits are increasingly struggling to pay their bills.

“Some lenders have already started to lower mortgage interest rates, despite the base rate decision. However, news of an increased number of people unable to meet their monthly mortgage payments, and repossessions, suggests that a base rate cut would have been welcomed with open arms by many.

“For the same reasons, an increase of the base rate could have proved disastrous for mortgage holders already beginning to struggle with the pressures of the credit crunch.”