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People looking at taking out a loan may be interested to hear the Council of Mortgage Lenders (CML) claims it is unlikely there will be a reduction in the interest rate until it becomes apparent that inflation will not climb any higher.

"Once we get over this spike in inflation there are prospects then for perhaps more concerted action to reduce interest rates," a spokesperson for CML stated.

At the present time, the interest rate stands at five per cent, after being held in August.

The last time the country witnessed a change to the interest rate was in April, when there was a reduction of 0.25 per cent.

A decision on next month's interest rate will be made on September 4th.  Those considering taking out loans will be waiting for this news with interest.

Figures from the Office for National Statistics have shown that annual inflation rose to 4.4 per cent in July, up from 3.8 per cent in June.

This was the biggest change reported since records began in 1997.