Interest rates will go up by a further 0.5 points next month, economists have warned.
They predicted the Bank of England would elect to hike rates in September to 2.25%, the highest level in 27 years.
All 50 economists surveyed by Reuters expect the bank to raise rates at its next meeting, with 30 predicting a rise of 50 basis points, and the rest expecting a 25bps rise to 2%.
However, they were more optimistic about inflation. The bank has predicted a rise to 13.3% in October, which would be the highest level since 1980. The majority of economists said they expected a peak of 11.4% this year.
