Rising inflation is also dampening the chances of another Bank Rate cut this year.

Mann says she stands ready for "forceful policy action" in the future.

The increase is likely to cause more pensioners to be liable for income tax given.

Industry experts are now split on when the Bank of England will next cut interest rates.

CPI inflation is now nearly double the Bank’s 2% target.

Analysts are now predicting an August rate cut at the earliest.

Industry experts predict that rising inflation could curb future Bank Rate cuts this year.

The IMF has also downgraded UK growth forecasts by 0.5%.

However, industry experts believe mortgage rates may remain stubbornly high.

However, the OBR has upgraded its forecasts for the following years.