Interest rates are likely to stay low for some time following the Bank of England’s decision to hold them at 0.5 per cent for the 11th month in a row.

That’s the view of Ian Spreadbury of Fidelity International, based in Hildenborough, who said he shared the Monetary Policy Committee expectations of slow growth and low inflation - despite a sharp 2.9 per cent rise last month - for some time.

He said: "This latest decision reinforces my expectations that we will experience a slow growth, low inflation environment going forward. Interest rates have again been held at 0.5 per cent and I expect them to remain at low levels for some time to come."

One factor against raising rates too soon was the extra cost it would place on servicing the UK’s high debt levels which, warned Mr Spreadbury, could "potentially place an economic recovery in jeopardy".

The MPC also decided to "pause" the injection of more money into the economy by buying government bonds – so-called quantitative easing – on top of the £200bn it has already spent on printing money.

Mr Spreadbury said there was a lot of cash sitting on the sidelines, particularly in Asia, for investment in bonds. And banks were likely to be big buyers of Gilts as a result of higher liquidity requirements.

Property consulting firm Jones Lang LaSalle, which manages Kent Science Park in Sittingbourne, said it did not expect the Bank to raise interest rates in the short term.

However, James Thomas, head of residential development and investment, warned that despite recent rises, house prices remain vulnerable to a "mild relapse" during 2010. "The demand for housing remains subdued as mortgage backed households remain weighed down by constrained financing conditions, a weak labour market and continuing uncertainty around the economic recovery and forthcoming elections," he said.

Meanwhile, the Housing Forum has warned that banks and other reluctant mortgage lenders are preventing the house building industry from moving towards recovery.

Shelagh Grant, chief executive, said: "It is clear that as we start to work our way out of the recession, there is still a potent combination of factors affecting the house building industry. If the industry is to meet housing targets, more achievable deposits and realistic rates will have to be adopted."