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.

Just 14% think that three more cuts before the end of 2025 is still realistic.

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

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.

Headline inflation reaccelerated in October to the highest rate since April 2024. 

The OBR says market expectations for interest rates remain volatile and predicts further increases in mortgage rates.