Pound tumbles to two-year low as stagflation fears rise – as it happened

Sterling tumbles to lowest since June 2020 as Bank of England lifts interest rates to 13-year high, cuts growth forecasts, and sees inflation hitting 10%

• Full report: BoE raises rates as it warns of recession and 10% inflation
• Analysis: recession is price Bank prepared to pay to control inflation
• Pound has dropped to near two-year low
• Economy seen shrinking in 2023
• Shell's underlying earnings jump over $9bn (7bn) in last quarter

UK car sales fell almost 16% last month, as shortages of key parts such as computer chips continue to hit production.

New car registrations declined by 15.8% year-on-year in April to 119,167 units, according to new figures from the Society of Motor Manufacturers and Traders.

Despite showrooms being open for the entire month, unlike the previous year which saw lockdown restrictions in place until 12 April, global supply chain shortages, of which semiconductors are the most notable, have continued to constrain the delivery of new vehicles.

The worldwide semiconductor shortage continues to drag down the market, with global geopolitical issues threatening to undermine both supply and demand in the coming months.