There will be no reduction in the base rate of interest until August at the earliest, according to one expert.

Howard Archer, chief UK and European economist at Global Insight, is convinced that the inflationary pressures within the British economy will be enough to force the Bank of England to maintain the base rate for the next few months.

A cut in interest rates would be welcome for the millions of Britons experiencing debt problems but Mr Archer predicts that such a move will not be made soon.

However, the economic expert expects to see the base rate begin to move significantly as the year goes on and predicts that it will fall as low as four per cent at some point next year.

"It currently seems highly unlikely that the bank will be prepared to trim interest rates again until August at the very earliest," he said.

According to Credit Action, British borrowers pay out an average of around £3,765 each month to service the interest on their debt management burdens.