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The impending UK recession will be shorter and shallower than previously feared, according to an encouraging new forecast by the Bank of England, which hiked interest rates to a 15-year high of 4% today, writes Mattie Brignal.

The Bank’s Monetary Policy Committee voted 7-2 in favour of upping the base rate by 0.5 points – its tenth consecutive rate rise. The European Central Bank and the US Fed also opted for rate increases in the last 24 hours, of 0.5 and 0.25 points, respectively.