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Stubborn inflation is tipping the Tories finances into crisis alongside mortgage holders

Amid all the hoopla around the impact of higher interest rates, it is easy to forget that last week’s decision by the Bank of England to raise the official rate by a full half a percentage point to 5pc simply returns them to their centuries-old long-run average, and also the sort of level that used to preside in the decade before the financial crisis.

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