Brexit car tariffs to be suspended for three years as EU protects car exports – as it happened

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The Bank has said that the full effect of interest rate increases is yet to come through to the economy, suggesting there may be more pain ahead.

It said:

The full effect of higher interest rates has yet to come through, posing ongoing challenges to households, businesses and governments, which could be amplified by vulnerabilities in the system of market-based finance

The full impact of higher interest rates will take time to come through. Given the impact of higher and more volatile rates, and uncertainties associated with inflation and growth, some risky asset valuations continue to appear stretched.

Conditions remain challenging, given increased geopolitical tensions and uncertainties over growth, inflation and interest rates.

The UK banking system is strong enough to support households and businesses, even if the economy does worse than expected.