The Bank of England has begun a two-day meeting to decide on the next interest rate move.

The monetary policy committee will announce its decision at midday on Thursday.

Speculation among City analysts suggests that the committee will vote to keep interest rates unchanged at 3.5 per cent.

The most recent change in rates was a reduction of a quarter point in July.

Two reports have boosted confidence in Britain's economic performance with the financial services and jobs market both on the up.

A quarterly CBI/PwC survey found optimism returning to the financial services industry - with a share price rally and a return to favourable business conditions.

And Recruitment and Employment Federation data reported the fastest growth in appointments in over two years.

A further boost came last week when growth figures were revised closer to the chancellor's forecast of around two per cent this year because trade figures had been collated wrongly.

With signs of growth in manufacturing there is little pressure for another cut in rates.

Analysts expect interest rates will stay unchanged and the next movement will be up - but forecast it will not happen until well into next year.

However any surprise shock to the economy, such as a sudden slump in house prices, could force the committee's hand.