Bank of England governor defends interest rate hike

The governor of the Bank of England has defended its decision to raise interest rates, saying there is a "real risk" of soaring prices becoming "embedded".

Andrew Bailey, told BBC Radio 4's Today programme: "The real risk we're responding to is that inflation becomes embedded and it doesn't come down in the way that we would otherwise expect."

Interest rates rose to 1.75% - the biggest rise in 27 years - with inflation now set to hit more than 13%.

The UK is forecast to fall into recession this year, with the longest downturn since 2008 predicted.