Could the UK see interest rates rise to 5%?

Interest rates are heading upwards, with the Bank of England raising them to 2.25% on Thursday - their highest level since the 2008 financial crisis when the banking system

faced collapse. At the same time the government is borrowing hundreds of billions of pounds to support the economy. It is a classic response to so called "stagflation",

which is when economic growth slows down but prices keep rising. By putting interest rates up, the central bank seeks to cool demand and therefore ease soaring price rises. At the

same time, the government steps in to support households and businesses that are struggling to get by. Thirty years ago they used to call it the "Ken & Eddie" show - a

reference to the closely coordinated action taken by then Chancellor Kenneth Clarke and Bank of England Governor Eddie George. For the last three weeks, however, it's been the

"Kwasi & Andy" show - with the new Chancellor Kwasi Kwarteng and current Governor Andrew Bailey meeting twice a week to thrash out their response to the crisis. Concerns

have been raised about the independence of the Bank of England under Liz Truss's government. But some degree of acting in concert is helpful. Earlier this month, for example, the

Bank stepped in to offer a funding line for cash-strapped energy suppliers in what was clearly a Treasury-inspired idea.Delicate balance The relationship has become a little

more complicated, though. How, for example, should Mr Bailey respond to the government's recent interventions on controlling the inflation rate, which is clearly the Bank's

remit?