The Bank of England today kept interest rates on hold at four per cent for the fifth month in a row.

But economists warned the low level of borrowing will not last.

The widely-expected decision came amid concerns consumers were living beyond their means and building up debts.

Retail sales figures have shown there is no let up in spending on the High Street while house prices have rocketed ahead and are forecast to continue to rise.

Recent borrowing data has shown consumers using credit cards to fuel their buying with people putting a record amount on plastic during February.

Other data has shown a pick up in the economy following last year's post-September 11 faltering, with manufacturing showing signs of recovery and the service sector bouncing back.

The improving picture means economists now forecast the bank's monetary policy committee will start cranking-up rates sooner rather than later, following the seven cuts last year which took the cost of borrowing to its lowest for nearly 40 years.

Economists are now predicting rates will be raised in the summer.

Forecasts of a rise vary from June to August, although some think it might come as early as May.

However, the bank still faces some calls for lower rates.

Roger Lyons, of the Amicus union, said at least 60,000 manufacturing jobs would be lost between now and the political conference season in the autumn unless action was taken to reduce the value of the pound.

He said jobs would continue to "haemorrhage" if interest rates were not cut.