The following statistics indicate that interest rates may now be set to rise.

Despite the Bank of Englands forecast that the property market will slowdown, house prices and mortgage lending has risen since the turn of the year. The price of an average UK home rose 0.5 per cent last month, following a 0.4 per cent rise in January, according to Nationwide.

Although the annual rate declined to 10.2 from 12.6 per cent, Nationwide said there was evidence that the worst of the downturn in the UK residential property market was over. However Alex Bannister, Nationwides chief economist, said that at the current pace, house prices could end the year up 6%, 2% above Nationwides initial forecast.

Loans for house purchase is up 3% from December, Consumer credit - overdraft, card purchases and bank loans rose 46% in January according to the Bank of England.

Alan Castle, UK economist at Lehman Brothers, said: "The odds of a surprise rate hike next week have probably increased to around one in three."