The Bank of England's interest rate setters have opted to keep the cost of borrowing unchanged at 0.5 per cent for the third month in a row.

The move was anticipated by most economic forecasters, suggesting that the Monetary Policy Committee are adopting a “wait and see” approach to gauge the effects of the previous six months of unprecedented rate reductions the wider economy.

The news, while good for borrowers, leaves saves and pensioners disappointed once again.

James Caldwell, director at Fairinvestment.co.uk, says, ‘All has gone quiet on the interest rate front, and it is expected to stay like this until the end of the year. While no fall means that savings account rates can remain reasonably stable, it does mean that saving rates are unlikely to increase, meaning little joy for those relying on their savings interest for income.

‘Pensioners will be particularly disappointed, because while many people are able to turn to the stock market in search of income, many pensioners may not be willing or able to take the risks associated with it.’