UK in ‘prolonged recession’ as Bank of England hikes interest rates to 3%, knocking pound – as it happened

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• How will the UK interest rate hike affect you?

Chancellor Jeremy Hunt is facing calls to come to the House of Commons or give a press conference to explain how mortgage-holders will be helped, if the Bank hikes interest rates as expected today.

Liberal Democrat Treasury spokeswoman Sarah Olney said:

The Chancellor must address the country immediately after the rate rise decision to spell out a plan to save homeowners on the brink.

He should either come to Parliament or hold a press conference to announce support for families facing mortgage bill rises worth hundreds of pounds a month.