Interest rates rise to 2.25%

Interest rates are at their highest level for 14 years – even if they’re still relatively low.

The Bank of England said inflation won’t be quite as high as expected because of the energy price freeze but we are likely to be in recession, albeit a mild one for now.

Tomorrow, the Chancellor Kwasi Kwarteng sets out his plan to reverse that – with tax cuts that will probably prompt the Bank to put up interest rates again within weeks.