American interest rates have risen again as the Federal Reserve last night lifted rates by a quarter point to 5pc. This is the sixteenth time in succession it has raised interest rates.

The decision was unanimous, but a hint at a pause was given, depending on the economic outlook.

Mervyn King, Governor of the Bank of England also made noises ruling out a fall in UK interest rates this year, though at 4.5pc they are likely to remain below American levels.

King also warned that the inflationary protection from cheap Chinese goods may be coming to an end.