If you are a homeowner seeking a remortgage or a hopeful home buyer then it will be a relief to learn that in last week’s monthly meeting the Bank of England's Monetary Policy Committee (MPC) left the interest rate untouched.  The standard base interest rate is therefore sitting at 0.5% for the 45^th consecutive month and is likely to stay that way through all of next year and possibly 2014 according to many economists.  The MPC meeting also left the quantitative easing programme at £375 billion.

In response to the decision of the MPC, Howard Archer, Chief UK and European Economist with IHS Global Insight commented on the impact of this month’s meeting and the expectations of those in the near future.  He said, “The Bank of England’s decision to hold off from further stimulative action at this stage was widely expected. An interest rate cut is clearly off the agenda while it is evident that several MPC members feel that now is not the time for more Quantitative Easing.

“However, with the economy seemingly struggling markedly in the fourth quarter following the third quarter GDP rebound, and with recovery prospects fragile, we lean towards the view that the Bank of England will ultimately decide to give the economy a further helping hand with a further £50 billion of QE.

“This could well occur in the first quarter of 2013 if data and surveys over the coming weeks point to the economy flirting with a “triple dip”. This would take the stock of QE up to £425 billion which we expect to be the ceiling.

“Meanwhile, we expect interest rates to remain at 0.50% for at least another two years from here.”

The minutes from the MPC meeting will be released on 19 December.