“While it’s positive to see that inflation hasn’t risen as much as the markets were expecting, it remains stubbornly high, with the 12-month CPI expected to be 3.8% by the end of 2025, well above the Bank of England’s target of 2%.

With the Bank taking a ‘gradual and careful’ approach to easing monetary policy, it’s likely to be next year now before we see a cut in the base rate.

We’ve seen mortgage rates ticking up in recent weeks but the good news for homebuyers is that they remain substantially lower than a year ago.

However, with growth and productivity weak, and UK businesses and households highly cautious, Rachel Reeves needs to pull a rabbit out of the hat in the upcoming budget to balance the books without fuelling further inflationary pressures with potential tax rises.“