The Bank of England raised interest rates for the fourth consecutive time at its meeting which concluded yesterday.

The base rate now stands at one per cent, its highest level since 2009.

Bank of England Governor Andrew Bailey spoke in his post meeting press conference of his belief that inflation will reach a peak of 10% in the summer.

Bailey also warned of a major slowdown in the economy, made worse by the continued conflict in Ukraine and the prospect of further rises in the price of energy as the cap is raised further in the Autumn.

Bailey believes that there is a narrow path to be negotiated between high and rising inflation and a potential recession. Most observers will see that path narrowing almost by the day. The continued effect of lockdowns in China on supply chains is also a contributing factor to the slowing economy.

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