“These figures suggest that the economy has lost momentum as sky high inflation and strike action continue to drag on key drivers of UK GDP, notably services and industrial production.
“Recession fears are likely to stalk the UK for some time as the boost to incomes from easing inflation and lower energy bills is substantially offset by rising taxes and the lagged impact of hiking interest rates.
“A struggling economy and strong likelihood of materially lower inflation should give the Monetary Policy Committee sufficient scope to keep rates on hold next month. Raising rates would further weaken our growth prospects and risk further banking volatility.”
Notes to editors: