The Bank of England kept its key bank rate unchanged at its record low of 0.5% today. The decision comes after six months of cuts from the monetary policy committee aimed at relieving the worsening recession. The Bank will now rely on its £75bn programme of quantitative easing - which injects liquidity into the banking system - to ease credit conditions.

The MPC launched the strategy last month and has bought up almost £26.5bn in Government and corporate debt so far under a three-month programme. The committee is monitoring the impact of the policy on the wider economy every month but announced no changes to the scale of the operation today.

Our opinion is that this will work against the fixed rate mortgage deals that are now widely available in the market, it will probably help the sterling rate, especially if the rumoured rate increase comes next month. We feel that an increase in rates wont do the market any harm next month and should put the country on more of an even keel against the pathetic way we look currently to the world with a .50% base rate, this leads everyone to wonder what has gone wrong and surely there is a better way to get us back on our feet.

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