Interest rates rise again but Bank of England hints at a brighter future

Threadneedle Street is still expecting a recession but it is likely to be a mild one by UK standards

• Bank of England raises UK interest rates to 4%

It is going to be bad but not as bad as previously feared. Interest rates may be near their peak. Inflation will be close to zero in a couple of years. Recent shocks have damaged the economy's supply potential. Those were the main messages from the Bank of England as it raised interest rates for a 10th successive time.

Threadneedle Street is still expecting a recession but a mild one by UK standards, and less severe than it was predicting in the immediate aftermath of Liz Truss's brief period as prime minister.