\n
The UK Prime Minister has urged homeowners and borrowers to “hold their nerve” over rising interest rates aimed at bringing down stubborn inflation.<\/b><\/p>\n<\/div>\n<\/div>\n\n
\n
Rishi Sunak told Sunday with Laura Kuenssberg: “I want people to be reassured that we’ve got to hold our nerve, stick to the plan and we will get through this.”<\/p>\n<\/div>\n<\/div>\n
\n
\n
This week the Bank of England raised interest rates to a 15-year high of 5%.<\/p>\n<\/div>\n<\/div>\n
\n
\n
Millions of people are facing higher mortgage repayments following the rise.<\/p>\n<\/div>\n<\/div>\n
\n
\n
Meanwhile, those who rent could face higher payments or the prospect of squeezed landlords selling their property, according to the National Residential Landlords Association.<\/p>\n<\/div>\n<\/div>\n
\n
\n
Mr Sunak continued to back the Bank of England despite some Conservatives saying it has not done enough to bring inflation back to its 2% target. <\/p>\n<\/div>\n<\/div>\n
\n
\n
Inflation – which measures the rate at which prices are rising – remained at 8.7% in May despite the Bank raising interest rates 13 times since December 2021. <\/p>\n<\/div>\n<\/div>\n
\n
\n
“I can tell you as prime minister, the Bank of England is doing the right thing,” Mr Sunak told the BBC. “The Bank of England has my total support. Inflation is the enemy.”<\/p>\n<\/div>\n<\/div>\n
\n
\n
\n
\n- Five ways to save money on your mortgage<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
Lib Dem leader Ed Davey criticised Mr Sunak’s comments as “patronising”.<\/p>\n<\/div>\n<\/div>\n
\n
\n
He said: “People need help, not a prime minister instructing them to hold their nerve.<\/p>\n<\/div>\n<\/div>\n
\n
\n
“Struggling homeowners will be rightly furious after watching an out of touch prime minister who has no idea of the pain caused by rising mortgage rates.”<\/p>\n<\/div>\n<\/div>\n
\n
\n
Mr Sunak has pledged to halve inflation by the end of the year.<\/p>\n<\/div>\n<\/div>\n
\n
\n
But former Treasury Minister Andrea Leadsom accused the Bank of doing “too little, too late”.<\/p>\n<\/div>\n<\/div>\n
\n
\n
While Karen Ward, a member of chancellor Jeremy Hunt’s economic advisory council, said the Bank had “been too hesitant” in its interest rate rises so far and called on it to “create a recession” to bring inflation under control.<\/p>\n<\/div>\n<\/div>\n