Britain's central bank is expected to leave its key lending rate at 4 per cent this week, amid signs robust consumer confidence has steered the UK through the worst of the global economic slowdown.
The Bank of England's Monetary Policy Committee (MPC) starts its two-day rate policy meeting on Wednesday, a week after the Bank's Governor, Sir Edward George, said rates may have to rise should consumer spending fail to moderate.
The bank cut rates seven times last year, bringing its repo rate to a 37-year low, to encourage consumers to carry on buying houses and goods amid fears that the country's economy might be hit by a US-led global slowdown.
The policy seems to have worked with the central bank reporting last week a record rise in consumer borrowing and mortgage approvals, and retailers reporting booming trade over the Christmas period.
All 28 economists polled last week by Reutersexpect the bank to keep its benchmark repo rate at 4 per cent, as signs also emerge that the US economy is beginning to recover.