The UK economy is likely to see zero growth until 2025, while interest rates remain high for longer or rise further, the Bank of England has warned. It came as the Bank left rates on hold for the second time in a row at 5.25%, the highest level in 15 years. Rishi Sunak has pledged to get the UK growing by the end of the year, but the lower forecasts put this in doubt. Despite the subdued outlook, Bank boss Andrew Bailey said it was “much too early to be thinking about rate cuts”. However, the Bank expects inflation – the pace at which prices rise – to fall sharply in the coming months. This means the prime minister is on track to meet his promise to halve inflation to about 5% by the end of the year.
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