Record low interest rates here to stay, say analysts

The Coalition got good news on the double yesterday after leading economists forecast that rock-bottom interest rates are here to stay, while year-end tax figures massively beat expectations.

Analysts said that with eurozone inflation staying stubbornly low the ECB may only start hiking rates as late as 2019, providing a further boost to the prospects for whoever forms the next government after the looming election.

That means the costs for homeowners paying off tracker mortgages will stay low for several more years, while more pressure will likely build on the banks during the election campaign to lower their standard variable mortgage rates, which critics have claimed are still far too high.