IT'S AN Easter bonus - enjoy it while you can.

Manufacturers and householders in the south breathed a sigh of relief as that

all-important interest rate was frozen at four per cent.

But regional economy experts predict a rate rise next month, making the cost of borrowing more costly. Manufacturers had argued against any fresh rise, saying it would damage their prospects.

But galloping house prices and surging

consumer debt suggested a rate rise was being delayed but not cancelled.

John Liddell, the Southampton managing partner of management consultancy giant Ernst & Young, warned that the interest rate will "more than likely" go up next month.

Mr Liddell said the rise in salaries, currently at a three-year high, combined with the continuing rise in house price inflation and

consumer spending, will be the cause.

He added: "Before they the Bank of England's Monetary Policy Committee decide to do this, though, I hope they will consider the fact that the region's business is not faring nearly as well as consumers.

"Though many parts of the financial services sector are booming, other service industries and the manufacturing sectors are struggling to achieve the growth they need, and the last thing we need is a further increase next month with more to follow."

Tim Kirby, managing director of TML Financial Solutions in Southampton, said: "News of a status quo in terms of interest rates is good news for the south's homeowners as continued stability always provides a confidence boost.''

Chris Chittenden, partner at Warner Goodman & Streat solicitors in Hampshire, said: "The indications had been for a rise after last month's decision to hold rates and businesses will breath a sigh of relief that we have some renewed stability in the market.''