The Bank of England has said that the UK’s recession will be shallower than expected but warned that it is “too soon” to declare “victory” over inflation as it hiked interest rates for the 10th consecutive time.
The UK’s central bank announced at noon it was - as widely expected - increasing the base rate by 0.5 per cent to 4 per cent, in a further blow to borrowers and those on tracker mortgage deals.
"It is too soon to declare victory just yet. Inflationary pressures are still there," Mr Bailey said in a press conference as he explained why the Bank had chosen to hike yet again as millions struggle with the cost of living squeeze.
He added that the Monetary Policy Committee had softened its language on future rises in interest rates because the economy is turning a corner on inflation.
"I think that reflects that we have seen a turning of the corner, but it’s early days and the risks are very large. And it’s really that which shapes where we go from here,” he said.
