What the Bank of England has to weigh up next week

Britain's weaker currency, should in theory, provide a boost to exports by making the price of UK-made goods more attractive. However, there has been little evidence of that yet, with manufacturers reporting a sharp fall in demand from overseas markets.

CONSUMER SPENDING

Retail spending appears to have held up surprisingly well, growing by a stronger-than-expected 0.7 percent in January. However, sales volumes may have been boosted by aggressive discounting over the Christmas and New Year period and are likely to suffer in the coming months in an environment of rising unemployment.

HOUSE PRICES

House prices are continuing to plunge at a double-digit rate and many analysts reckon they have further to fall as rising unemployment and restrictive lending conditions take their toll.

However, official data showed approvals have improved modestly from a record low and a survey by the Royal Institution of Chartered Surveyors indicated a pick-up in interest from prospective buyers.