Borrowers are breathing a sigh of relief after interest rates were held at 5.75%.

The Bank of England’s Monetary Policy Committee had been expected to hold rates this month until the impact of previous increases made this year had been felt.

The MPC had increased rates by 0.25% last month, the fifth increase so far this year.

However, rates are still expected to increase to 6% in the coming months as concern over the rate of inflation continues.

Simon Rubinsohn, Royal Institute of Chartered Surveyors’ chief economist, said the decision not to increase interest rates was a “welcome respite” for people with mortgages and other loans.

“Our suspicion is that the Bank will want to hold fire on further policy tightening until there is more convincing evidence that the housing market is able to shrug off previous interest rate hikes,” he added.