Residential mortgage approvals also increased in December.

"Financial stability is a foundation for growth. There isn’t a trade off in a fundamental sense", Bailey said.

"It's time to get interest rates back toward normal", Taylor says.

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.

30-year gilts yields are at their highest level since 1998.

Despite the monthly fall, mortgage approvals remain above their 12-month averages.

A Bank of England working paper published today has stated that brokers encouraging households to choose short fixed-term mortgages, transferring risk from base rate changes from...

The move was widely expected following this week's higher-than-expected wage growth data and inflation figures.

Inflation has increased for the second month in a row.