ROCKETING oil prices may have saved the south's business community from a summer of interest rate hikes.

Fears of terrorist action and high demand have pushed up prices across the globe and some forecourts in Hampshire have been selling fuel at 99.9p a litre.

But Chris Chittenden, commercial partner at Warner Goodman & Streat solicitors in Southampton, said high prices at the pumps might restrain the Bank of England, which could be good news for business.

He believes recent reports of substantial rate rises to cool the booming consumer market could now be way off the mark.

"The oil price rises are set to have the same effect on the economy as an interest rate rise of half of one per cent,'' said Mr Chittenden.

"We are now set to see a cooling of consumer spending, a slowdown in house price rises and a new level of considered optimism from the south's business community.''

Mr Chittenden said that common sense was set to prevail and the south's business community could look forward to a summer of gradual but sustained optimism in terms of expansion and investment.

For those looking to this Thursday's decision before making a move in the housing market a further rise is being seen as unwelcome but manageable.

Ken Lake, managing director of Southampton-based Orchard Homes, said that those looking to buy properties remained confident that bricks and mortar would continue to prove a good investment - whether as their main home or a long-term investment.

"Interest rates have remained relatively low for several years now and even another small rise by the Bank of England will not put people off property,'' he said.

"We are still experiencing a tremendous level of activity in apartment and house sales and see no reason for this to cool in the coming months.''