The Bank of England today announced it would be holding interest rates at 0.5% - marking a full two years since they were dropped to their current record-low level.

The decision came in spite of continued pressure to raise rates in order to combat high inflation. The Consumer Price Index (CPI) rose to 4% in January, and is widely expected to remain high for the rest of the year at least.

Ray Boulger, senior technical manager at (UK Auction List's partner) mortgage broker John Charcol, says: "I don't expect Bank Rate to rise before the second half of the year and, whilst a couple of 0.25% increases in the second half is the most likely scenario, I would not be surprised if it is still 0.5% at the end of the year.

"Rather more important than the exact timing of the first increase is how quickly it rises and I expect that process to be slow."

For further expert analysis read more at http://money.uk.msn.com/news/uk-economy/articles.aspx?cp-documentid=156420722