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The UK economy grew by an unrevised 0.8 per cent in the second quarter of 2007, according to official data released today.

Annual GDP growth is now running at 0.3 per cent, figures released by the Office for National Statistics (ONS) show.

News that the country's economy has grown above its long-run average for six consecutive quarters has prompted speculation that the Bank of England may act to increase interest rates by a further quarter point, to bring them from 5.75 to six per cent.

Some analysts have suggested in recent days that the Monetary Policy Committee (MPC) will opt to leave the benchmark rate of interest unchanged at its next meeting as a result of the current turmoil on the world's financial markets.

But the latest economic data appears to suggest that consumer spending is holding up in the wake of the five interest rate rises that have already been introduced over the past year – a fact that is likely to concern policymakers who wish to curb inflation.

Commentators have pointed to the unbalanced nature of Britain's economic growth, with household and government spending both up by 0.8 per cent in the second quarter. Manufacturing output was also up 0.7 per cent, but investment growth was disappointing, falling by 1.1 per cent over the period.

Meanwhile the GDP expenditure deflator, a measure of inflation in the economy, rose by 3.8 per cent compared with the second quarter of 2006. The ONS said the figure represented the highest growth recorded since the third quarter of 1996, with the rise having been partly driven by trade prices.

Capital Economics said the data made it likely that another interest rate rise would be on the cards, providing the financial markets showed signs of calming in the wake of the ongoing credit crisis that has been sparked by problems in the US housing sector.

"Assuming that the markets continue to calm down, the strength of demand suggests that the case for a further interest rate hike probably still stands," the consultancy said in a note.