The Bank of England (BoE) has raised interest rates once again, increasing financial pressure on those with loans and mortgage payments.
Decision makers on the Bank's Monetary Policy Committee (MPC) decided to raise the base rate from 3.5 per cent to 4 per cent in a bid to drive down inflation. The Bank warned that the UK is still on the path towards a recession, however it highlighted that the economic downturn could be less impactful and shorter than previously predicted.
An earlier forecast predicted that peak-to-trough gross domestic product (GDP) is set to shrink to 1 per cent from around 3 per cent. This is due to the fall in wholesale energy prices which has taken place since the last MPC forecast in November.
