Homeowners should be able to breathe a sigh of relief this week when the Bank of England is expected to leave interest rates unchanged.

Economists were predicting the bank's monetary policy committee would leave rates on hold at six per cent when it makes its monthly decision on Thursday.

Rates have been at six per cent since February and some economists are forecasting they could stay that way for a full year, although others argue they have yet to peak.

Nick Parsons, chief currency strategist at Commerzbank, said: "Our prediction is that we will see a first birthday at six per cent, which will be the longest period rates have remained unchanged."

After this, it was likely rates would start to go down later in the year, he argued.

The bank would be unlikely to make any major changes ahead of March's budget, unless there was a significant shift in the economic fundamentals, he forecast.

Neil Parker, economist at the Royal Bank of Scotland, said this week's decision was likely to be a "non-event", with rates left on hold.

He forecast rates could rise in the New Year, particularly if Chancellor Gordon Brown loosened the public spending purse strings any further.