Western Asset High Income Fund II (HIX) offers a high dividend yield of 14.3%, but its inconsistent earnings history raises concerns about dividend sustainability. HIX's performance is heavily influenced by the interest rate environment, with higher rates negatively impacting its price and NAV over the past five years.

The theory behind increasing interest rates to tackle inflation is that by making borrowing more expensive, more people will cut back on spending and that leads to demand for goods falling and price rises easing. But it is a balancing act as high interest rates can harm the economy as businesses hold off on investing in production and jobs.

The base rate is what the Bank of England uses to charge other banks and lenders money - this then influences how much you're charged as a customer to borrow money

John Hancock Preferred Income Fund III's heavy leverage and focus on investment-grade borrowers present risks in a high-interest-rate environment. See why HPS is a Hold.

The Bank also forecast a significant slowing of the US economy hit by its own tariffs. The Bank also said the impact of the National Insurance was "fairly small to date". The Bank of England has cut interest rates from 4.5% to 4.25%. We'll bring you more on this shortly, including the breakdown of how the Bank's committee voted. Stay with us.