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<p><strong>THE Bank of England has hiked interest rates to 5% &ndash; the highest since 2008. </strong></p>
<p>The shock move is set to deepen the mortgage&nbsp;crisis as borrowing costs rise for the 13th time in a&nbsp;row.</p>
<p>The 0.5% increase is the sharpest since&nbsp;February, and follows higher-than-expected inflation in May.</p>
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<p>Bank of England governor Andrew Bailey said: &ldquo;The economy is doing better than expected, but inflation is still too high and we&rsquo;ve got to deal with it.</p>
<p>&ldquo;We know this is hard &ndash; many people with mortgages or loans will be understandably worried about what this means for them.&nbsp;But if we don&rsquo;t raise rates now, it could be worse later.&rdquo;</p>
<div style="page-break-before: always; page-break-after: always;">
<p>Policymakers are battling to bring inflation down to the Chancellor&rsquo;s 2% target.</p>
<p>Yesterday PM Rishi Sunak said the government had the situation in hand. Speaking at an Ikea distribution centre in Dartford, Kent, he pledged: &ldquo;I&rsquo;m 100% on it, it&rsquo;s going to be OK.&rdquo;</p>
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ANOTHER KICK IN WALLET FOR HARD UP BRITS

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