Borrowers that are looking to secure a remortgage will be glad to know that the Bank of England’s Monetary Policy Committee (MPC) will keep the standard base interest rate at 0.5 per cent for yet another month.  This was what was expected to be the outcome of the September MPC meeting according to experts.  The economy is stuck in between two extremes, both a weakened economy that cannot handle higher interest rates and a high inflation level that is robbing consumers of spending power.

This could mean an emergency move by the MPC to add a boost to the economy by adding more quantitative easing (QE).  There are fears that the UK could be facing another recession that could be avoided by more QE.  The result though could increase inflation which is already double of the Bank of England’s goal of 2.0 per cent.  Inflation now stands at 4.4 per cent.

Ian McCafferty, the CBI's chief economic adviser, said it is still too early to be certain that more policy action is required from the Bank. He added: "We hope the UK economy will be on a firmer footing by next year, when a lower inflation rate will bring some relief for households. However, the global downside risks remain acute, so the Bank must continue to monitor global developments very closely and be prepared to be flexible."

More information about the stance and tone of the MPC meeting will not be known until the minutes from the MPC meeting are released later in the month.  Experts believe there could be more QE as early as November but do not expect a rise in the interest rate by the MPC until sometime in 2012.