Decision makers on the Bank's Monetary Policy Committee (MPC) opted to hike the base rate from 3.5% to 4%, to help bring down double-digit inflation.
The Bank said that the UK is still headed for a recession, but stressed that the economic downturn could be shallower and shorter than previously expected.
Peak-to-trough gross domestic product (GDP) is set to shrink by 1%, from around 3% in an earlier forecast.
This is because wholesale energy prices have fallen significantly since the MPC produced its last forecast, in November, and inflation has begun to fall from its peak last year.
The UK will suffer a recession of five consecutive quarters, starting in the first three months of 2023.
But the decline will be much softer than in previous recessions, such as during the 2008 financial crisis.
Governor of the Bank of England Andrew Bailey, has said that it is "too soon" to declare victory over inflation.
Bu hikaye The Herald dergisinin February 03, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Herald dergisinin February 03, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
WAYNE'S WARNING
ROONEY TOLD HE WILL NEED A FAST START WITH ARGYLE TO PROVE DOUBTERS WRONG
King Billy hammer Victory to climb to third in standings
LEGS of 18, 17 and 18 darts lit up Paul Palmer's (28.36) 3-0 individual success in an 8-3 team win for Kings Arms over Beacon Park in the Steve Chapman 501 League.
Wimbledon bid difficult, insists Nadal
RAFAEL Nadal has all but ruled himself out of competing at Wimbledon next month, writes Andy Sims.
Young guns ready to fire, says Cross
KATE Cross feels England's emerging talent makes it \"a really exciting time\" heading into this summer's T20 World Cup and beyond.
Sunak's £2.4bn tax break gamble
RISHI Sunak is gambling on a £2.4 billion tax break to help secure the support of pensioners as he battles to remain in Number 10.
Israeli strikes add to misery in Rafah
ISRAELI strikes on Rafah have killed at least 16 Palestinians, first responders said yesterday, as residents reported an escalation of fighting in the southern Gaza city.
City councillor chosen as Labour MP candidate
SARAH ALLEN TO STAND IN THE SW DEVON CONSTITUENCY
Red-light cameras set to increase in number
DRIVERS URGED TO OBEY RULES OF THE ROAD
Work gets rolling for petanque 'terrains'
STONEHOUSE AREAS CREATED WITH BRICKFIELDS DEVELOPING
Funds are raised to buy dialysis machines
NEXT MISSION TO UKRAINE WILL TAKE VITAL AID SUPPLIES