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

Bank raises base rate to 5% and is predicted to go to 6% as pressure grows on government to intervene

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.