“While the central bank has shifted to a lower gear on interest rates, this hefty rise will still be a body blow to those businesses and households already struggling with spiralling borrowing costs.
“A year of rapidly rising rates will have inevitably taken its toll on the economy by diminishing consumer and business confidence, squeezing living standards and leaving companies with little financial headroom to invest.
“Policymakers must carefully consider what happens next. With inflation starting to ease as economic conditions deteriorate, the risk of tipping the UK into a deeper and more damaging recession by overtightening monetary policy is growing.”
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