For the 4th consecutive time, the Bank of England has held the base rate at 5.25%.
Rightmove's mortgage expert, Matt Smith says: "There are increasing signs that Base Rate rises are having a real impact on the economy and inflation is heading in the right direction. Another hold in the Base Rate today also shows that the Bank will also be cautious not to overshoot Base Rate rises and will be keen to maintain the current stability.
"The surprise uptick in inflation a couple of weeks ago didn't derail the downward trend of mortgage rates. The big picture remains the same - the Base Rate is unlikely to rise further, and mortgage rates have some room to come down further before settling."
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The UK inflation rate increased slightly in December to 4% up from November's 3.9%, although this has largely been put down to alcohol and tobacco increases - delaying hopes of interest rates being cut in the first half of this year.
Both inflation and interest rates tend to be reflected in Gibraltar given our extensiove interaction with th UK market.
The 3.9% rate for November represents a significant improvement to this time last year when inflation peaked at over 10% - the highest in over 40 years.
The Bank of England held the UK ase interest rate at 5.25% this month, warning that Britain still had a long way to go in combatting inflation compared to other advanced nations.