Interest rate is 'likely to be maintained'

Residential landlords with buy-to-let mortgages could be among those to continue to benefit from lower interest rates for the rest of the year, it has been claimed.

Economic research consultancy Capital Economics has claimed that the Bank of England's Monetary Policy Committee is unlikely to increase its base rate during the rest of 2010.

This could come as good news to mortgage customers with deals that are affected by the base rate.

The Bank's current base rate remains at a historically-low 0.5 per cent following last month's decision to maintain the position.

Vicky Redwood, UK economist for Capital Economics, said: "They will want to wait until inflation is likely to have peaked and then is falling again and they will want to see how the recovery is faring. Give it another three to six months and then they could be doing more."

"We believe that they will remain at this level at least for the rest of this year and probably most of next year too."

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