DATA on Britain's spending habits put a nail in the coffin of any remaining hopes of an interest rate cut next week.

While some economists say rates could still fall lower, perhaps in February or March, a number say rates have reached their lowest point and are pencilling in a rise towards the end of the year.

Recent factors have added to that opinion, with evidence showing consumers are still keenly borrowing cash and Britain's suffering service sector is perking up.

Figures from the Bank of England showed borrowing on credit cards, and for mortgages and loans grew by £6.8bn, or 0.9 per cent in November as consumers splashed out on the back of low interest rates. The figures come hot on the heels of comments from Bank of England governor Sir Edward George who said interest rates might have to be raised to moderate consumer demand.

Julian Jessop, chief economist, Europe, at Standard Chartered said he thought there would not be a cut next week.