Rishi Sunak faces PMQs after rise in interest rates

The Bank of England raised its base interest rate to 5% for record 13th increase in a row.

Rishi Sunak is facing PMQs for the first time since the Bank of England rose interest rates to 5%.

The Prime Minister will face questions from Labour leader Sir Keir Starmer and other MPs.

The cost of living crisis is expected to be on the agenda amid warnings of the impact on people with mortgages.

The increase in the central bank’s base rate means it is at the highest level in 15 years and comes after warnings the hike could see 1.4 million mortgage holders lose at least a fifth of their disposable income – with those aged between 30 and 39 the worst hit.

The Bank of England has a target to try to get the rate of inflation to around 2%.

In order to drag inflation down quickly, the most commonly used policy tool used by the Bank of England is increasing the base interest rate.

Prime Minister’s Questions on Thursday also comes after former health secretary Matt Hancock told the UK’s ongoing Covid-19 Inquiry he is “profoundly sorry” for every death caused by the virus.

STV News is now on WhatsApp

Get all the latest news from around the country

Follow STV News
Follow STV News on WhatsApp

Scan the QR code on your mobile device for all the latest news from around the country

WhatsApp channel QR Code
Posted in