Sunak under pressure as Bank signals rates will stay high for months

Tory MPs call for targeted tax cuts as Labour criticises 14th interest rate hike as mortgage bombshell'

• Bank warns rates will remain high for at least two years
• More pain in store: Bank raises a few eyebrows
• Explainer: what the rate rise means for you

Rishi Sunak is under mounting pressure from Conservative MPs to boost the UK's struggling economy after the Bank of England signalled that there will be no respite from the high interest rates hitting households and businesses until well into next year.

Threadneedle Street prompted calls for tax cuts and a package of support for the housing market after it raised rates for a 14th time in a row, with the cumulative impact of dearer borrowing meaning a general election expected in late 2024 would take place against a backdrop of a barely growing economy.