ECB hikes interest rates by record 75bp and slashes growth forecasts – as it happened

Christine Lagarde warns that eurozone economic growth is weakening, but EBC plumps for record increase in borrowing costs to curb inflation

The pound is dipping back towards yesterday's 37-year lows, as concerns that Britain is sliding into recession hit the markets.

Sterling is back below $1.15 against the US dollar, as investors fret about the extra borrowing needed to fund the energy rescue package.

The pound has shifted up slightly from lows not seen against the dollar since 1985, when Ronald Regan was in power and Freddie Krueger had returned to screens as the monster under the bed.

Now the energy shock is the nightmare to deal with on Downing Street, with Liz Truss set to unveil her expensive subsidy plan later today to deal with the bill horror.