More evidence of strong consumer confidence in Britain emerged today.
It reinforced the view that Britain would emerge relatively unscathed from the global economic slowdown and that UK interest rates may have troughed.
A survey by Britain's largest mortgage lender showed house prices rose at their fastest rate for over two years in December. Another report from the British Retail consortium showed retailers enjoyed their best December for five years.
Economists said the consumer figures, which followed news yesterday that car sales soared 17 per cent last year to an all-time record, ensured there would be no interest rate cut at the Bank of England's policy meeting this week.
"Although these surveys merely confirm what was already becoming apparent, they are probably the final nail in the coffin for any rate cut hopes this week," said JP Morgan economist Mr Danny Gabay.
The Bank of England cut rates seven times last year to a 37-year low of 4 per cent. But with signs also emerging that the US economy may be lumbering out of its downturn, some economists feel that the most likely next rate move is upward.