Interest rates are due to stay fixed at 5.25% further to the Bank of England’s decision to leave the rate unchanged. The bank’s Monetary Committee will release minutes on their pronouncement tomorrow.

The bank's decision will provide no relief from the rising cost of living as it is predicted that inflation has risen by 0.7% this month, raising February’s figure from 2.5% to 3.2%. The exact figure will be released tomorrow and will take a controversial stance amongst consumers, especially with those seeking a personal loan or those already in financial difficulty.

Personal loan interest rates will therefore undoubtedly remain unchanged, or rise further as a result of the Bank of England’s stationary action, resulting in a further struggle for those on the lower end of the income bracket.

Obtaining a personal loan is a lot harder than it was a year ago, with some lenders including Alliance & Leicester, totally dismissing secured loans from their options for new borrowers.