BOE Hikes Key Rate by 50 Basis Points to 5%

The transcript discusses the recent decision by central banks to raise interest rates, despite concerns from economists that such a move might signal panic. The decision aims to control inflation, which has been unexpectedly high, but raises the risk of a recession in the UK. This situation poses challenges for Prime Minister Rishi Sunak, whose priorities include fighting inflation and growing the economy. The rate hike also increases pressure on mortgage borrowers, prompting calls for Chancellor Jeremy Hunt to provide support, although he is cautious not to oppose the Bank of England.

What pressures are mortgage borrowers facing in the current economic climate?

What challenges does Chancellor Jeremy Hunt face in addressing the needs of people at risk of repossession?