British unions fear for job security if interest rates rise

The Bank of England is announcing the interest rate level at noon, with British homeowners hoping it will hold at 4%.

Speculation that the Bank could opt for a second rate rise in a row has gathered pace, and latest data from the Halifax showing no slowdown in the housing boom.

Above-average retail sales in February also suggested consumers have yet to react to interest rate rises, according to a recent survey.

In Britain, the Chartered Institute of Purchasing and Supply published a survey earlier in the week, that said growth in manufacturing slowed last month after a strong January.

Last month, all nine members of the Bank's monetary policy committee voted to raise interest rates by a quarter point to keep inflation on target and curb house price growth and consumer spending.

Trade union leaders have urged the Bank to show caution on rates, saying 50,000 jobs will be lost by Easter if the cost of borrowing continues to rise.