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The Bank of England has today voted to maintain the base rate at its current level of 4.75%.
The Bank's nine-person Monetary Policy Committee (MPC) voted 6-3 in favour of the hold, with three members voting for a cut.
Read on to find out what it means for you whether you're buying a home, are due to remortgage, or trying to get the best return on your savings.
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After recent cuts in August and November, the base rate has been held at 4.75%.
This had been expected, following inflation rising to 2.6%, the highest level in eight months and above the Bank's target of 2%.
In its report, the MPC said today's decision 'has been guided by the need to squeeze remaining inflationary pressures out of the economy to achieve the 2% target both in a timely manner and on a lasting basis'.
If you're due to remortgage at the end of a fixed-term, today's decision won't make a big difference to the rate you'll get.
The Bank recently signalled that cuts to the base rate may be more gradual than had been anticipated earlier this year.
This resulted in lenders repricing their deals and the average two and five-year mortgage rates increasing slightly between November and December.
Experts still anticipate that the base rate will fall next year, bringing mortgage rates down slowly in the medium term.
The MPC has adopted a cautious approach to reducing the base rate, stressing the need to keep a close watch on the risk of inflation rising.
Experts anticipate that we could see two or three 0.25-percentage-point cuts to the base rate in 2025.
The Office for Budget Responsibility forecasts that the base rate will average 3.9% in 2025 and 2026.
Capital Economics has similar forecasts, predicting that the rate will settle at 4% at the end of next year.
It's been a frustrating year for people looking to move home, with the high cost of borrowing having a big impact on affordability.
Today’s announcement will disappoint buyers who'd been hoping for back-to-back base rate cuts before the end of the year.
The hold doesn't mean that you should necessarily put off your moving plans. It's possible to lock in a mortgage rate upon having an offer accepted and switch to a cheaper deal before you exchange, if the lender lowers its prices.
Matt Smith, of the property website Rightmove, says: 'While this isn't the early Christmas present that buyers would have wanted, the decision was widely anticipated and must be considered against a backdrop of inflation being at the top end of forecasts'.
Maintaining the base rate is expected to slow the decline in rates on instant-access savings accounts.
Following the base rate being cut in November, the average rate on instant-access accounts experienced its largest monthly drop since 2022.
Excluding accounts with limited withdrawals or other restrictions, the best instant-access savings rate is currently 4.75%.
If you're looking for a guaranteed rate on your savings for two years, the best rate currently available is 4.64%.
The top one-year cash Isa offer rates are around 4.5%.
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