INTEREST rates are likely to remain on hold for months to come despite signs of a slowdown on the high street, economists predict.

Britain's soaring property market needs to come off the boil before a cut can be made, they warn.

Bank of England officials yesterday (Jan 9) left rates on hold at 4.0 per cent for the 14th month in a row.

The move angered trade unions that have repeatedly called for cuts of at least 0.5 per cent to prevent tens of thousands of job cuts in the manufacturing sector.

Trade union Amicus warned that 200,000 jobs could be axed this year unless action was taken to repair the damage done by the global downturn.

But Royal Bank of Scotland economist Ross Walker said rates could be on hold for some time yet.

"Although we have had some evidence of a consumer slowdown, the MPC will want to look at the data over a longer period of time," he said.

Data from Britain's biggest lender the Halifax, now part of banking group HBoS, showed that house prices rose by 32.7 per cent in the South West and 25.8 per cent in the South East last year.

On Wednesday the Echo reported figures from estate agents Goadsby & Harding Residential which pointed to a 35.26 per cent rise in 2002.

Figures were based on the 2,262 residential properties sold by Goadsby & Harding's 17 branches across the area from Bridport to Ringwood, Fordingbridge and Salisbury.

The Engineering Employ-ers Federation urged the MPC to act next month given the "warning signals" from all sectors of the economy.

EEF chief economist Stephen Radley said manufacturers were still being hit by the continuing weakness of eurozone members such as Germany.

Standard Life Bank is increasing mortgage rates for 70,000 customers despite the bank's decision to hold at 4.0 per cent.

Standard Life is raising its standard variable rate by 0.1 per cent to 5.1 per cent from January 15.