Recent data indicates a slowing of house price inflation
BBC Radio 4's Money Box was broadcast on Saturday, 3 July, 2004, at 1204 BST.
The programme was repeated on Sunday, 4 July, 2004 at 2102 BST
The Bank of England's Monetary Policy Committee (MPC) will meet on Wednesday to review interest rates.
After two successive rises in as many months, analysts are not expecting the Bank to announce another one on Thursday.
However, the UK economy expanded faster in the first quarter than was previously estimated, with GDP rising by 0.7% and year-on-year growth revised upward to 3.4%, the Office for National Statistics reported.
These figures could suggest inflationary pressures, which would signal the need for rate rises in the near future.
Also, the US Federal Reserve has announced its first rise in nearly four years - to 1.25% - in order to curtail inflation as the US economy continues to grow.
Meanwhile, new housing market data suggests a slowdown, which will be welcome news to the MPC.
Halifax reported that prices have risen by 1.2% in the last month, the smallest gain since November; Nationwide also reported an ease in prices, and Hometrack reported a dip in demand from first-time buyers.
We spoke to Michael Hughes, director and economist at Baring Asset Management, about the recent economic indicators.
Producer: Jennifer Clarke
Presenter: Paul Lewis
Web Producer: Nathalie Knowles