Interest rates set to remain at 0.5%

Policymakers were expected to keep interest rates on hold at 0.5 per cent today after inflation fell to a sevenmonth low, but experts believe a hike may still be on the cards for May.

The rates decision comes after official figures showed inflation falling to 2.7 per cent in February – its lowest level since July last year – as the squeeze on household finances begins to ease off.