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The Guardian - UK
The Guardian - UK
Politics
Richard Partington, Ben Quinn and Kiran Stacey

‘Shock and awe’ interest rate rise leaves Sunak’s cost of living pledge in tatters

Rishi Sunak visiting an Ikea distribution centre in Dartford, Kent
Rishi Sunak visiting an Ikea distribution centre in Dartford, Kent, on Thursday. Photograph: WPA/Getty Images

Rishi Sunak’s pledge to ease the cost of living crisis is in tatters after the Bank of England was forced to raise interest rates to 5% in an inflation-busting move that risks driving the economy into recession.

With the prime minister under fire over the soaring cost of borrowing, the central bank pushed through a half-point hike, deploying what economists described as “shock and awe” tactics.

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