The Bank of England has signalled that interest rates could remain above 5pc until 2026 to tame inflation as it admitted that higher wages and prices are becoming embedded in the economy.

Policymakers voted 6-3 to raise interest rates by 0.25 percentage points to a 15-year high of 5.25pc in the fourteenth consecutive increase.

Andrew Bailey, the Governor of the Bank of England, said it was vital that officials “make absolutely sure” that inflation fell “all the way back to the 2pc target”.