In a bid to curb inflation, this was the highest rate increase since 1989.

The Monetary Policy Committee’s (MPC) latest projections described ‘a very challenging outlook for the UK economy’ and said that the UK was in recession, which was expected to last for a prolonged period and CPI inflation would remain elevated at over 10% in the near term.

The Bank warned that GDP is expected to decline by around 0.75% during 2022 H2, in part reflecting the squeeze on real incomes from higher global energy and tradable goods prices, the Bank of England said.