Price rises will not slow as quickly as expected due to soaring food costs, the Bank of England has warned.
The forecast came as it increased interest rates to 4.5% from 4.25% in an attempt to slow soaring price rises.
The Bank said inflation would “fall sharply in April” but not as far or as fast as it previously thought.
But it was more optimistic on how quickly the UK would grow, saying it would avoid recession and raising its forecasts by the most in 26 years.
The change in outlook for the economy contrasts sharply with the Bank’s forecast six months ago when it said the UK would enter the longest recession on record.
use forecasts as the starting point for discussions about what might happen in the future, rather than an exact prediction.
Bank of England governor Andrew Bailey now says there will be “modest but positive growth”.
When the effects of strikes and the extra Bank Holiday for King Charles’ Coronation are stripped out, the economy will have grown by 0.2% in the…
This article was written by and originally published on www.bbc.co.uk