A RISE in interest rates next month looks less certain following the release of economic growth figures that were be weaker than expected.

Experts said the Bank of England's May decision on borrowing - already complicated by low annual inflation of only 1.1 per cent - was likely to be affected by a disappointing first quarter GDP figure of 0.6 per cent.

At the same time, last month's retail sales figures came in sharply above forecast to highlight the dilemma facing the bank in two weeks.

While members of the monetary policy committee want to see lower household spending, they have been confronted with low inflation and fresh uncertainty over the pace of economic recovery, particularly in manufacturing.

Investec chief economist Philip Shaw believes a rate rise to 4.25 per cent on May 6 is no longer a certainty.

He said: "It looks set to be a much closer call than anyone could have envisaged a week ago. There will be some on the committee who will think there is no urgent need for another tightening of rates."

The level of uncertainty was raised by figures estimating growth in the first quarter to be down on the 0.9 per cent achieved in the final three months of last year.