U.K. Prime Minister Rishi Sunak conceded shortly after the BOE's rate hike that the government's mission to halve inflation to 5% by the end of the year had recently become more difficult.
There is intensifying pressure on Britain's government to do more to help struggling households, with the country's shadow finance minister warning of a "mortgage catastrophe" as millions are pushed to the brink of insolvency.
The Bank of England last week hiked interest rates by 50 basis points to 5%, a bigger increase than many had expected.
The BOE's 13th consecutive rate rise takes the base rate to the highest level since 2008.
"The rise in interest rates to 5% will push millions of households with mortgages towards the brink of insolvency," said Max Mosley, an economist at NIESR.
Persons:
Rishi Sunak, NIESR, Max Mosley
Organizations:
Bank of England, National Institute of Economic, Social Research
Locations:
Wales, England