The Bank of England has raised its growth and inflation forecasts for 2017 and kept interest rates on hold at 0.25%.
It now expects the economy to expand by 1.4% next year, with inflation set to surge to 2.7% – nearly 3 times its current level.
Growth of 1.5% is now forecast for 2018 – down from the previous 1.8% estimate.
The revisions mean the Bank has changed its mind about when the UK economy will feel the impact of June’s Brexit Referendum vote.