Sunak Defends BoE's 5% Interest Rate Hike to Tackle 8.7% Inflation

Prime Minister Rishi Sunak has defended the Bank of England's decision to raise interest rates to a 15-year high of 5% in order to stamp out inflation, which currently stands at 8.7%.

The Prime Minister stated that there is "no alternative" to this measure, and urged cash-strapped Britons to "hold our nerve" despite the increase in monthly repayments it will bring.

The Bank of England's decision aims to reduce inflation, which measures the rate of rising prices, and comes despite efforts to tame it.

The increase in interest rates has left mortgage-holders bracing for a big jump in their monthly repayments.

Treasury minister John Glen noted that there is "not a single quick lever" the government can pull to tackle inflation and that the regulator is monitoring the issue.

The Liberal Democrats have criticized Sunak's approach, stating that struggling homeowners need help rather than being told to hold their nerve.