It happened as the Bank decided to keep rates on hold at 5.25%, the highest level in 15 years, for the second consecutive time.

By the end of the year, Rishi Sunak promised to get the UK growing, but the lower forecasts cast doubt on this.

Bank CEO Andrew Bailey stated that it was “much too early to be thinking about rate cuts” despite the gloomy prognosis.

The bank does anticipate a significant decline in inflation in the upcoming months, which is the rate at which prices increase.

This indicates that the prime minister will fulfill his pledge to cut inflation in half by the end of the year, to roughly 5%.

The Bank of England had increased rates fourteen times in a row prior to September.