The threat of a downturn should force interest rate setters at the Bank of England to rethink plans to increase the cost of borrowing, City economists have claimed.

The Monetary Policy Committee is under pressure to increase the cost of borrowing amid fears over growing consumer debt and rising inflation.

Three out of eight members voted for a rise this month, and chief economist Andy Haldane has indicated he close to backing them.

City analysts believe it would be a mistake, however, that could exacerbate an economic downturn and compound the impact of rising inflation.