Bank of England to announce economy forecasts today

The Bank of England is to deliver a latest forecast for the UK economy today, with any improvement could signal that interest rates may increase earlier than expected.

Experts have pencilled in a hike in the cost of borrowing from its historic low of 0.5% for the spring of next year.

Read: CBI predicts early rate rise amid house price warning

Surging house prices are unlikely to have any direct effect on interest rates for the time being as the Bank of England has said it would rather use other tools at its disposal to cool a potential property bubble before having to raise rates to do so.