UK Interest Rates Rise to 15-Year High as PM Urges Homeowners to 'Hold Their Nerve'

Prime Minister Rishi Sunak has urged homeowners and borrowers to "hold their nerve" as the Bank of England raises interest rates to a 15-year high of 5% in order to bring down stubborn inflation.

The increase in interest rates will result in higher mortgage repayments for millions of people.

However, Sunak backs the Bank of England and has pledged to halve inflation by the end of the year.

Some Conservatives criticize the Bank of England for not doing enough to bring inflation back to its 2% target, while Lib Dem leader Ed Davey criticized Sunak's comments as "patronizing." Former Treasury Minister Andrea Leadsom accused the Bank of doing "too little, too late," and Karen Ward, a member of chancellor Jeremy Hunt's economic advisory council, called on the Bank to "create a recession" to bring inflation under control.