Energy prices have been on the rise again in recent weeks and fears of another inflationary shock are, again, on economists’ lips. For now, though, the Bank of England has just voted six to three to keep interest rates steady at 3.75 per cent.

The decision, just announced by the Bank’s Monetary Policy Committee (MPC) is a relief to Chancellor John Healey and mortgage holders throughout the country, who are beginning to feel the effects of the ending of the MPC’s cutting cycle. Analysis from Moneyfacts – who track the mortgage market – finds that the average new mortgage rate is now 5.59 per cent, well above the 4.9 per cent it sat at at the beginning of this year. If a........

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