There may be another interest rate in the pipeline, says the Bank of England...

Governor Mervyn King signalled the possibility as he warned householders over borrowing and the continuing concern over inflation.

There was a list of worrying inflationary pressures which remained "elevated" and may lead to action by the Bank's Monetary Policy Committee, Mr King told business leaders.

"If these indicators remain elevated, the MPC may need to take further action," he said.

With it becoming ever easier for householders to borrow from banks, the bank chief also had a warning for householders over variable rate borrowing.

"Obvious though the point may seem, it is unwise to borrow so much that the repayments are affordable only if interest rates remain at their initial levels."

6% by the end of the year?

Without a slowing in household and companies spending and property prices, as well as a drop in inflation, the market anticipates interest rates may hit 6% by the end of the year.

Households were spared a back-to-back rise in interest rates last week after the Bank of England voted to keep borrowing costs on hold.

The decision, which left the Bank's base rate at 5.5%, had been widely expected, although economists have warned another rise may happen next month.

Families with a typical £100,000 home loan have seen their monthly repayments increase by £63.79 after four interest rate hikes since last August.

There have been signs that the rate hikes are beginning to slow consumer spending and the housing market.

Mortgage approvals fell to their lowest level in 12 months during April, while figures from the High Street showed a fall in sales in May as shoppers were put off by wet weather and previous rate rises.