The Bank of England is widely expected to keep interest rates on hold for the fifth month in a row when it meets tomorrow.

Economists are predicting that rates at four per cent are at their lowest level and the next movement will be upwards.

Speculation has now turned to when the next increase will be, with City analysts pencilling in June or August, though some think it could come as early as May if retail sales figures remain strong.

In February retail sales figures showed the sharpest month-on-month increase for two years, as low interest rates boosted consumer spending.