THE Bank of England sent out its strongest message to date that interest rates could soon rise amid concerns over household debt.

The Bank's Monetary Policy Committee voiced concerns at its last monthly meeting that consumer growth was unsustainable.

Minutes of the meeting also said that key factors which sparked previous rate cuts were no longer present.

Some members believed the risks to demand and economic activity have eased, so that the need for additional stimulus to keep inflation on target has gone.

The minutes said: "Concerns about the longer-term sustainability of the current pace of consumption growth and household debt accumulation also suggested to some members that an increase in interest rates might soon become necessary."

The disclosure will surprise some City economists who have predicted that interest rates will rise - but not until later this year at the earliest.

Some have warned a rise would be a huge shock that could trigger a consumer downturn and leave the Bank of England open to criticism.

But since rates were last cut by 0.25 per cent in July, the UK economy has shown signs of shrugging off its recent sluggishness with strong indications of revival in the manufacturing sector and improvements in service industries coinciding with record mortgage lending

Policy makers led by governor Mervyn King have been torn between tackling soaring consumer debt and trying to bolster flagging manufacturing firms.

British consumers have been borrowing at record levels as interest rates, static at a 48-year-low, encourage them to spend more.