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

Annual core CPI inflation eased to 3.5%.

A hold was widely expected today due to rising inflation and strong private sector wage growth.

GDP had been expected to rise 0.1% month-on-month.

Inflation has now almost doubled since September, when it was 1.7%.

HNWIs’ confidence in the economy falls to 48% from 84% six months ago.

Economists were upbeat about the better-than-forecast GDP figures for Q4, but warned that the UK economy is not out of the woods yet.

UK GDP has increased for the first time in three months.

Swap rates have been rising in recent weeks and concerns about persistent inflation is a key driver.

Inflation has increased for the second month in a row.