Interest rates up to 5% to curb inflation, Bank of England says. Helia Ebrahimi with the latest on the UK economy.

If mortgage payers, renters and businesses were feeling the squeeze before today, well now the pips are coming out.

Five per cent is the new interest base rate announced earlier by the Bank of England – the highest it’s been for fourteen years.

That’s the pain. The gain?

According to the bank – reduced inflation and the avoidance of a recession.