The experts are predicting that the record low Bank of England interest rate is here to stay for the foreseeable future.

So what does it mean for you?

Low rates

There had been some speculation that the rise in inflation to 3.5% in March would mean a rise in interest rates. However, a report in the Guardian quotes a number of economists who are convinced that rates aren't going to change for a while to come.

They highlighted that volatility made it too difficult to definitively conclude that a rate rise was a good idea - and that the bank will not act without a clear picture. They also pointed out that there was little point in raising rates to combat inflation, because the drivers are international such as fuel prices, which will remain expensive regardless of what happens to rates.

How long for?

When asked when rates would rise, their answers varied quite dramatically. They agreed that 2012 was unlikely, some said the end of 2013 was likely, others suggested 2014, and others said they weren't expecting rates to rise until 2017.

The market clearly expects rates to stay low. You can usually tell what the experts are thinking by the way they are pricing fixed mortgages. Louise Holmes, spokesperson for Moneyfacts.co.uk, commented: "Average rates for five year fixed rate deals have been falling steadily for the past couple of years. Interest rates are predicted to stay at the historical low of 0.50% for the foreseeable future." As a result, five year fixed rates have fallen from an average of 5.59% to 4.86%.

So what does it mean for you?

Savers

This is terrible news, as it means rock bottom returns are set to stay. In this environment it's worth taking steps to ensure you are on the best possible rate. Make sure you have taken full advantage of tax-efficient savings like ISAs, and shop around for the best rate you can. It's also worth thinking about whether there are any alternatives to cash saving that may suit you. Investing in equity ISAs isn't right for everyone, but should at least be investigated.

For those who were planning to live off the interest on savings, this is a difficult blow to bear. It means a complete re-think in some cases as to whether there are any other potential sources of income, such as part time work or renting out a room.

Borrowers

In theory it should mean you are getting a great deal, and your mortgage payments have shrunk dramatically to help you cope with tough economic times. For many thousands of people, monthly payments have fallen for the last three years.

However, as we reported yesterday, the continued low-rate environment is likely to mean your mortgage company is looking for new ways to fleece you. Rates are starting to creep up as they have decoupled from the Bank of England rate, which starts to mean we benefit far less from low interest rates than we may expect.

It also leaves borrowers facing the question of whether they should fix their mortgage while rates are so low, or take a chance because they are expected to stay that way. David Black, Defaqto's Banking Specialist, says: "Prospective borrowers have to take a view on whether to pay a premium for the certainty of a fixed rate mortgage or to take a chance on suffering possible future rate increases with a base rate tracker mortgage. Currently the average fixed rate mortgage has a 0.30% to 0.80% higher interest rate than the average base rate tracker mortgage with the same initial rate period."

He adds: "When you're looking for a mortgage it's also worth paying attention to the relative competitiveness of the lender's Standard Variable Rate because these vary considerably, and as many borrowers have recently discovered, it may be something you're eventually stuck with."

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