An increase in British interest rates will give the Central Bank here even more ammunition to hold off on any cut in Irish rates. Confirmation that Irish mortgage lending and credit are continuing to surge ahead will also underline the Bank's concerns about cutting rates.

The Bank of England yesterday unexpectedly announced a quarter-point rise in its "repo" rate - the rate at which it lends money to banks - to 7.5 per cent, citing inflationary pressures caused by a surge in average earnings. See page 2