UK interest rate rise expected

Homeowners should be braced for a quarter point rise this week

The Bank of England will announce at lunchtime whether or not it is going to change interest rates.

There is speculation it might be tempted to raise them by a quarter of a point to four and a quarter per cent.

Economists say the bank's Monetary Policy Committee will try to cool soaring house prices and consumer debt by increasing rates.

Analysts now reckon base rates will reach 5% by the end of the year in a bid to rein in consumers.

Record mortgage lending, surging retail sales and a recovering manufacturing sector all point to higher rates.

Recent figures have shown that consumers are still borrowing and spending enthusiastically and the manufacturing sector is picking up despite the strength of sterling

There have been two rate increases since last November.