Recession will be shallower and shorter than predicted, says Bank of England

The Bank of England now expects a shallower and shorter recession this year than it predicted in November - although GDP will still not return to peak levels until 2026.

The Bank’s Monetary Policy Committee (MPC) - which on Thursday raised interest rates to 4 per cent - predicted the UK economy will shrink by just 0.5 per cent over 2023, after previously projecting a 1.5 per cent decline.