In 2006 the UK economy grew at a rate that tops forecasts, according to new official data.

Chancellor Gordon Brown had predicted that the economy would grow by 2.7 per cent last year.

But new data from the Office for National Statistics shows that the economy saw 2.75 per cent growth.

And during the last quarter of 2006, Britain's GDP rose by 0.8 per cent - an increase of three per cent compared to the same period in 2005.

However, some analysts have been warning that the growth could mean further interest rate hikes this year.

Howard Archer of Global Insight said: "This above-trend performance is likely to reinforce the Bank of England's concern about the lack of spare capacity in the economy, thereby adding to the pressure for a further interest rate hike."

The Bank of England shifted the national base rate up by 0.25 per cent earlier this month.