Bank set to keep rates on hold

Members unanimously voted to lift rates to 4% last month

Homeowners are gearing themselves up for the latest decision on UK interest rates from the Bank of England's Monetary Policy Committee (MPC).

The MPC raised rates to 4.0% last month and speculation that another rate rise may be looming gathered pace on evidence of a buoyant house market.

Meanwhile, above-average retail sales in February suggested the consumer boom has yet to be reined in.

But the sluggish manufacturing sector may stop the MPC making a hasty move.

The Chartered Institute of Purchasing and Supply (CIPS) published a survey on Monday which said growth slowed last month despite a strong start to the year in January.

This may be enough to prevent another quarter point rate increase this month.

Last month, all nine members of the Bank's monetary policy committee voted to raise rates by a quarter point to keep inflation on target and curb house price growth and consumer spending.

But trade union leaders have put pressure on the Bank, urging its MPC members to go easy on rates, warning that 50,000 jobs could be lost by Easter if the cost of borrowing continues to rise.