While the February mortgage lending and approval data are relatively healthy, there are hints that housing market activity could be starting to lose momentum after several months of improvement.

We've very pleased about the approval and we're looking forward to the process going forward.

The MPC still has to see conclusive sustained evidence that 2006 pay settlements are remaining contained.

The data were firmer overall than expected,

The latest data - including the improvement in manufacturing activity and current strength of the housing market - has increased the odds that the eventual next move in interest rates will be up.

If this is confirmed, it will reinforce our suspicion that the December performance was inflated by many consumers opening their wallets to treat their families and themselves at Christmas having held back their spending over much of 2005.