“The trend line will continue upwards before it starts to come down again"

Paul McGerrigan, CEO at fintech broker Loan.co.uk:

“No surprises that the rising rate line continues upwards and hits 5%; this was of course inevitable after yesterday’s inflation news.

“If inflation is to drop to the initial 5% target set by Rishi Sunak, the Bank and No.10 need a faster slowdown in spending, so they have fired their only weapon again.

“One commentator believes the government needs to drive a recession to “shock” enough people and businesses into tightening their belts, which will ultimately tame inflation, but let’s hope it doesn’t come to that.

“The trend line will continue upwards before it starts to come down again.”