looking further back to the early 905, interest rates were much higher than this. 4.25% might feel high in terms of recent times, but back here in the 905, it was much higher 5till. we are expecting that decision any more moment now. we deci5ion any more moment now. we will give you that news as soon as it comes into us, waiting for it to drop on the news agencies. we are expecting a 12 time in a row, that decision. the bank of england making that very important decision that impacts on so many people's lives, on borrowers and savers, of course. the bank of england interest rate currently at 4.25%, will it go up for another time in a row? it has already gone up 12 times over the past year or so. it has risen to 1l5%. past year or so. it has risen to

4.5%. risen by a quarter of a percent, that is from our economics editor, faisal islam, who has tweeted that. just getting that information in that, as expected, interest rates in the uk are now at 4.5%, up from 4.25%, a quarter rate rise. 0ur cost of living correspondent is watching these developments for us, kevin, news that will impact on so many people's lives for their mortgages and make life just that bit more difficult as they have seen those rate rises so many times, for the 13th time in a row? it many times, for the 13th time in a row? , ., . many times, for the 13th time in a row? ,., ,, many times, for the 13th time in a row? , ,,, row? it is not a surprise, but clearly the — row? it is not a surprise, but clearly the impact _ row? it is not a surprise, but clearly the impact is - row? it is not a surprise, but clearly the impact is still - row? it is not a surprise, but| clearly the impact is still very real. it will make borrowing more expensive for many, many people. also, it will increase the debate, if you like, on this policy and the effect it is having. it will feel a little bit strange to people that,

if they are already feeling pressure on their finances, if they are already feeling pressure on theirfinances, if if they are already feeling pressure on their finances, if they are already seeing prices rise and things are pretty tough, that things are now going to get tougher because borrowing is more expensive. the reason for that is because the bank and the committee, the monetary policy committee, is looking at spending, and it is looking at whether nonessential spending can be dampened down. what it is trying to do is take some of the demand out of the economy, trying to dampen some of that demand on nonessential spending, and although there has been some questions from some economists on whether that's the right thing to do, because clearly the pain is felt for many people. the quarter percent point very much expected, and now we will wait and see whether there is any kind of hint to come on whether this is the end of rate rises, or whether we have more to come.— end of rate rises, or whether we have more to come. thank you. as we

were saying. — have more to come. thank you. as we were saying. it — have more to come. thank you. as we were saying. it is _ have more to come. thank you. as we were saying, it is ordinary _ have more to come. thank you. as we were saying, it is ordinary people - were saying, it is ordinary people whose lives are affected by this interest—rate rise to 4.5%. cheryl spoke to us about having to move in with her parents because of rising costs and struggling to get a mortgage. welcome back to you. what is your reaction? ball ijust feel sorry ijust i just feel sorry for anybody with a mortgage at the moment. i wouldn't have been able to turn to survive in the place i was in, i would have gone under. this is going to be the case for so many people. i was fortunate, i sold my house in november, and i had to move back to my parents�* home, because i couldn't remortgage. i'm self—employed, and that plays a part for me in trying to remortgage. it is really hard for people at the moment. i don't know how long i'm going to be where i am, with my parents. i am years old. this is what i thought would happen.

—— | this is what i thought would happen. —— i am 43 years old. i didn't think this is how it would be for me, and i don't know when this is going to be over. it's people i feel sorry for who are already on the breadline like i was, who are trying to sell their homes. i don't how it will be for them at the moment. i their homes. i don't how it will be for them at the moment.- their homes. i don't how it will be for them at the moment. i guess that is the thing for _ for them at the moment. i guess that is the thing for so _ for them at the moment. i guess that is the thing for so many _ for them at the moment. i guess that is the thing for so many people - for them at the moment. i guess that is the thing for so many people in - is the thing for so many people in their 205, 305, 405. they haven't seen things like this —— interest rates like this. they haven't enabled to plan and prepare for them, because they seemed to come out of the blue with so many economic shocks over the past 18 months? ~ , ,., , ., , economic shocks over the past 18 months? ~ , , ., months? absolutely. it was straight after covid- — months? absolutely. it was straight after covid- i _ months? absolutely. it was straight after covid. i was _ months? absolutely. it was straight after covid. i was furloughed - months? absolutely. it was straight after covid. i was furloughed during | after covid. i was furloughed during covid, that was a difficult period. to come from that, and everything thatis to come from that, and everything that is going on in russia and straight into that, that impacted everything so much. i was fortunate that i was self—employed, so i was

able to work really long hours. it wasn't a nice position to be in, i start work at 7am and was working until 10pm every day. it was this conveyor belt of just trying until 10pm every day. it was this conveyor belt ofjust trying to make ends meet. i was onlyjust able to pay my mortgage at the end of the day. it was a horrible time in my life. it was unbearable, because i felt like i was on this conveyor belt right and ijust could not get off of it. i didn't know where it was going to end. i don't know when my house would be sold. i imagine this is what it is like for so many people now. how do you choose what you can pay and what you can pay? i don't know how people are going to cope. i really don't.— cope. i really don't. thank you very much for taking _ cope. i really don't. thank you very much for taking us _ cope. i really don't. thank you very much for taking us through - cope. i really don't. thank you very much for taking us through your. much for taking us through your personal circumstances, and we do feel for you, as i'm sure many of our viewers do insert instances that are similar. —— and circumstances. faisal, can you give us some

insight? faisal, can you give us some insiuht? ., ' , ., insight? that 12th interest-rate rise in a row. — insight? that 12th interest-rate rise in a row, up— insight? that 12th interest-rate rise in a row, up to _ insight? that 12th interest-rate rise in a row, up to 4.596, - insight? that 12th interest-ratel rise in a row, up to 4.596, widely rise in a row, up to 4.5%, widely expected. if you look at the detail of something else that got released today, this the monetary policy report for it. it is a quarterly health check of the economy. what we have seen some sharp changes to the forecast every three months, principally because energy prices have been so volatile, they were very high at £4 a firm, as the gas market calls it, and they've gone down to a third of the pat valley right now. it has had a big impact on the economic forecast. that has been a significant... that sounds like great news, it was so bad in the previous forecast that it gets us to quite modest growth. that is a glass half—full element of the new forecast. the less good thing is that inflation, although it has fallen from where we are at the moment, 10.1%, it fall slowly, more

slowly than we expected and anticipated. the government has set itself the target of trying to half inflation by the end of the year. that is perilously close to not being hit. inflation remaining above 5% by the end of this year, but in a year's time, the guys here expected inflation to fall into just 1%. it is now expected to be three to 4%, which is above the actual bank of england target. what is driving that, as everybody knows who is watching this, has been food prices, a europe—wide shock according to the bank of england, and knock—on impact from energy price rises we have seen. all of this counts with some uncertainty, it hinges on the notion that energy prices remain relatively benign, as they were in europe over the past winter, and that that remains the case in the coming weeks. that's the expectation in the

markets, but who knows what geopolitics russia and ukraine could throughout. we put this onto a giant mix, and my impression is that we have had this 12th rise. this is not a case of 12 and out. perhaps it goes further because inflation is not yet under control. there are fears it has become embedded, and there is fears in the uk context that it there is fears in the uk context thatitis there is fears in the uk context that it is a little stickier than it is elsewhere. the bank leaving their options open, leaving the weapon loaded for further rate rises in the future, at least one injune. loaded for further rate rises in the future, at least one in june. thank ou ve future, at least one in june. thank you very much- — future, at least one in june. thank you very much. let's _ future, at least one in june. thank you very much. let's go _ future, at least one in june. thank you very much. let's go back - future, at least one in june. thank you very much. let's go back to i future, at least one in june. thankl you very much. let's go back to our business reporter. david, give us some comparisons internationally. how does the uk compared to the us and the rest of europe? i can how does the uk compared to the us and the rest of europe?— and the rest of europe? i can do that. we were _ and the rest of europe? i can do that. we were just _ and the rest of europe? i can do that. we were just talking - and the rest of europe? i can do that. we were just talking about inflation levels and where they got to any uk, at 10.1% i said that was

the level of price increases until march of this year, 2023. inflation in other places is a little bit lower, generally. if you look at countries like lebanon and syria and venezuela, they are way over 100%. in the us they are down 4.9%, in europe it is 7%. let's have a look at where interest rates are at in other places. with the exception of japan, which is often outside the economic cycle of other countries, right across the worlds, countries have been raising the interest rates. you can see the latest interest rate here in the uk. this graph is updated to show that. it is the same as canada. the us route has been much more aggressive in pushing its interest rates up. it's interest—rate now is 5.25%. the euro area has its interest rate lower at around four point, excuse me 3.75%. the euro area has lower inflation in the uk. we are expecting further

increases in the euro area, but for now those pressures and price are slightly different, and one of the reasons behind that is brexit. i can give you a couple of reasons as to why brexit has been a challenge to uk prices. 0ne why brexit has been a challenge to uk prices. one is a tight labour market, there have been some difficulties getting labour into this country to work in many sectors, and there have been some supply chain issues. these two issues combined, along with other external factors, issues combined, along with other externalfactors, have issues combined, along with other external factors, have increased prices a little more in the uk than they have in the euro area. lets seak they have in the euro area. lets speak with _ they have in the euro area. lets speak with jane _ they have in the euro area. lets speak with jane king _ they have in the euro area. lets speak with jane king in - they have in the euro area. lets speak withjane king in surrey, an speak with jane king in surrey, an independent mortgage adviser. welcome to you. this is expected, but it is bringing interest rates up to its highest in 15 years. how many people will be impacted with regards to their mortgages?— to their mortgages? absolutely not unexpected. _ to their mortgages? absolutely not unexpected. but — to their mortgages? absolutely not unexpected, but there _ to their mortgages? absolutely not unexpected, but there will - to their mortgages? absolutely not unexpected, but there will be - to their mortgages? absolutely not unexpected, but there will be a - to their mortgages? absolutely not unexpected, but there will be a lot| unexpected, but there will be a lot of variable — unexpected, but there will be a lot of variable rate mortgage holders who wiii— of variable rate mortgage holders who will be redoing their sums, expecting — who will be redoing their sums, expecting to have to pay some more

money— expecting to have to pay some more money next — expecting to have to pay some more money next month. if you are on a fixed _ money next month. if you are on a fixed rate. — money next month. if you are on a fixed rate, you don't need to worry, because _ fixed rate, you don't need to worry, because obviously your rate is fixed~ — because obviously your rate is fixed. anybody on a tracker rate, your— fixed. anybody on a tracker rate, your rate — fixed. anybody on a tracker rate, your rate is — fixed. anybody on a tracker rate, your rate is guaranteed to go up by 025%_ your rate is guaranteed to go up by 025% next— your rate is guaranteed to go up by 0.25% next month. anybody on a standard — 0.25% next month. anybody on a standard variable rate or discounted rate is _ standard variable rate or discounted rate is going to have to wait and see what— rate is going to have to wait and see what their lender does, because obviously— see what their lender does, because obviously the lender will need to decide _ obviously the lender will need to decide whether they follow bank rates _ decide whether they follow bank rates uo — decide whether they follow bank rates up. while the majority of borrowers _ rates up. while the majority of borrowers are on fixed rates, there will he _ borrowers are on fixed rates, there will he a _ borrowers are on fixed rates, there will be a significant amount on trackers — will be a significant amount on trackers and variables who are going to have _ trackers and variables who are going to have to— trackers and variables who are going to have to be looking at raising some _ to have to be looking at raising some more money next month. what can --eole some more money next month. what can eo - le who some more money next month. what can peeple who are — some more money next month. what can people who are struggling _ some more money next month. what can people who are struggling with _ some more money next month. what can people who are struggling with their - people who are struggling with their repayments actually do? where the a 90, repayments actually do? where the a go, back to the lender and financial adviser? ii go, back to the lender and financial adviser? , ., �* , adviser? if you're struggling, the first ort adviser? if you're struggling, the first port of _ adviser? if you're struggling, the first port of call— adviser? if you're struggling, the first port of call must _ adviser? if you're struggling, the first port of call must always - adviser? if you're struggling, the first port of call must always be i adviser? if you're struggling, the | first port of call must always be a lender~ _ first port of call must always be a lender. lenders are not interested in repossessing properties except as a last— in repossessing properties except as a last resort. there are lots of them — a last resort. there are lots of them available to people who are struggling, please do not put your head in_ struggling, please do not put your head in the sand. it will affect

your— head in the sand. it will affect your credit rating if you don't sorted — your credit rating if you don't sorted out fairly quickly. get the phone _ sorted out fairly quickly. get the phone to — sorted out fairly quickly. get the phone to your lender.— sorted out fairly quickly. get the phone to your lender. what options do eo - le phone to your lender. what options do people have? — phone to your lender. what options do people have? our— phone to your lender. what options do people have? our mortgage - do people have? our mortgage holidays readily available? some lenders will _ holidays readily available? some lenders will maybe _ holidays readily available? some lenders will maybe allow - holidays readily available? some lenders will maybe allow you - holidays readily available? some lenders will maybe allow you to l lenders will maybe allow you to switch — lenders will maybe allow you to switch to — lenders will maybe allow you to switch to interest only for a little while, _ switch to interest only for a little while, some allow holidays, and if you're _ while, some allow holidays, and if you're on— while, some allow holidays, and if you're on a — while, some allow holidays, and if you're on a tracker or a variable rate, _ you're on a tracker or a variable rate. you — you're on a tracker or a variable rate. you can— you're on a tracker or a variable rate, you can see if it is worth jumping — rate, you can see if it is worth jumping onto a fixed rate, so at least _ jumping onto a fixed rate, so at least you — jumping onto a fixed rate, so at least you know what your repayments are going _ least you know what your repayments are going to be for the foreseeable future _ are going to be for the foreseeable future. there are options out there, but nevertheless it is another blow for people — but nevertheless it is another blow for people with mortgages who are probably— for people with mortgages who are probably feeling a little put up on this morning. i�*m probably feeling a little put up on this morning-— this morning. i'm sure there are lots and lots _ this morning. i'm sure there are lots and lots of _ this morning. i'm sure there are lots and lots of them, _ lots and lots of them, unfortunately. you have urged people not to bury their head in the sand, that it can be overwhelming if you are facing an increasing repayment and don't know where you will find the money. what happens if you do miss a mortgage payment? if you miss a mortnae miss a mortgage payment? if you miss a mortgage payment — miss a mortgage payment? if you miss a mortgage payment it _ miss a mortgage payment? if you miss a mortgage payment it will— miss a mortgage payment? if you miss a mortgage payment it will show- miss a mortgage payment? if you miss a mortgage payment it will show up - a mortgage payment it will show up as a late _ a mortgage payment it will show up as a late payment on your credit profile, — as a late payment on your credit profile, which can affect your credit —

profile, which can affect your credit profile if you wish to borrow money _ credit profile if you wish to borrow money in — credit profile if you wish to borrow money in the future, which is why it is important — money in the future, which is why it is important to contact your lender, as if you _ is important to contact your lender, as if you can— is important to contact your lender, as if you can come to an arrangement with them, _ as if you can come to an arrangement with them, maybe they can extend the term to _ with them, maybe they can extend the term to you _ with them, maybe they can extend the term to you to reduce your rates, and that— term to you to reduce your rates, and that will avoid showing up on your credit — and that will avoid showing up on your credit file. the and that will avoid showing up on your credit file.— your credit file. the 12th interest- rate _ your credit file. the 12th interest- rate rise - your credit file. the 12th interest-rate rise in - your credit file. the 12th interest-rate rise in a i your credit file. the 12th i interest-rate rise in a row, are your credit file. the 12th - interest-rate rise in a row, are we interest—rate rise in a row, are we seeing an increase in repossessions? i don't think we are. i think people are quite _ i don't think we are. i think people are quite sensible. a lot of people have seen— are quite sensible. a lot of people have seen this coming. i think we have _ have seen this coming. i think we have to _ have seen this coming. i think we have to get — have seen this coming. i think we have to get used to the fact that the rates — have to get used to the fact that the rates that we had, the sub—1% rates, _ the rates that we had, the sub—1% rates, were — the rates that we had, the sub—1% rates, were artificially low and could — rates, were artificially low and could not— rates, were artificially low and could not be maintained forever. i think— could not be maintained forever. i think this — could not be maintained forever. i think this is — could not be maintained forever. i think this is the new normal, this is where — think this is the new normal, this is where rates are going to be for a while _ is where rates are going to be for a while and — is where rates are going to be for a while and i— is where rates are going to be for a while, and i think people will factor— while, and i think people will factor it— while, and i think people will factor it in in the future when you are looking — factor it in in the future when you are looking at borrowing. i appreciate they're properly going to have to _ appreciate they're properly going to have to borrow less, and compromise on where _ have to borrow less, and compromise on where they want to buy or move to. ,., , ., , , on where they want to buy or move to. _ , ., to. do stay with us. just a reminder to. do stay with us. just a reminder to our viewers _ to. do stay with us. just a reminder to our viewers that _ to. do stay with us. just a reminder to our viewers that in _ to. do stay with us. just a reminder to our viewers that in the _ to. do stay with us. just a reminder to our viewers that in the past i to. do stay with us. just a reminder to our viewers that in the past 15 i to our viewers that in the past 15 minutes or so the bank of england

have announced their latest interest—rate rise, the 12th in a row, up from 4.25% to 4.5%. we have more on that here on bbc news. thank you for staying with us, we were talking to our economics editor, who was not sure whether interest rates had peaked, and they may continue to rise. how do mortgage advisers factor that in when you are advising people? mast when you are advising people? most of it is trying — when you are advising people? most of it is trying to _ when you are advising people? most of it is trying to manage people because — of it is trying to manage people because my expectations. people have to realise _ because my expectations. people have to realise that they can probably borrow — to realise that they can probably borrow less. people do have budgets, the first— borrow less. people do have budgets, the first thing we ask them is what is a comfortable monthly spend for you, is a comfortable monthly spend for you. and _ is a comfortable monthly spend for you, and we try and tailor what they want _ you, and we try and tailor what they want to— you, and we try and tailor what they want to borrow around it. just because — want to borrow around it. just because they can borrow a form of money, _ because they can borrow a form of money, doesn't he may actually want

to. i money, doesn't he may actually want to ithink— money, doesn't he may actually want to i think if— money, doesn't he may actually want to. i think if they're being sensible, people are making offers on property, it is a bit of a buyer's _ on property, it is a bit of a buyer's market, and some people are deciding _ buyer's market, and some people are deciding may be not to buy now and maybe _ deciding may be not to buy now and maybe wait — deciding may be not to buy now and maybe wait a year. maybe inflation will come _ maybe wait a year. maybe inflation will come down by the end of the year. _ will come down by the end of the year. and — will come down by the end of the year, and interest rates will come down, _ year, and interest rates will come down, and — year, and interest rates will come down, and it is about managing expectations of what they can and can't _ expectations of what they can and can't buy — expectations of what they can and can't buy l — expectations of what they can and can't bu . ., �* ~' ., expectations of what they can and can't bu . ., �* ~ ., ., expectations of what they can and can't bu. ., �* ~ ., ., ., expectations of what they can and can't bu. .,�* ~ ., ., ., can't buy. i don't know how long you have been a — can't buy. i don't know how long you have been a mortgage _ can't buy. i don't know how long you have been a mortgage advisor, i can't buy. i don't know how long you have been a mortgage advisor, but i have been a mortgage advisor, but you think we have gotten a bit unrealistic living with these low interest rates were so many years, and this is more like the reality that we have to get used to? absolutely. back in 2009 when rates started _ absolutely. back in 2009 when rates started to _ absolutely. back in 2009 when rates started to fall, we had a historically low interest rates instead _ historically low interest rates instead. there is a whole generation of new_ instead. there is a whole generation of new buyers who have never known anything _ of new buyers who have never known anything else. i sometimes get clients — anything else. i sometimes get clients come to me and say, why is it so— clients come to me and say, why is it so high— clients come to me and say, why is it so high now? you have to explain to them _ it so high now? you have to explain to them that, actually, this is how it used _ to them that, actually, this is how it used to — to them that, actually, this is how it used to be, and theyjust got used _ it used to be, and theyjust got used to— it used to be, and theyjust got used to very low rates. it is a bit of mindset— used to very low rates. it is a bit of mindset of, this is how it is

like — of mindset of, this is how it is like this— of mindset of, this is how it is like this is— of mindset of, this is how it is like, this is how it will be for the foreseeable future.— like, this is how it will be for the foreseeable future. sorry, thank you ve much foreseeable future. sorry, thank you very much for— foreseeable future. sorry, thank you very much for giving _ foreseeable future. sorry, thank you very much for giving us _ foreseeable future. sorry, thank you very much for giving us your - very much for giving us your analysis as a mortgage adviser. i just wanted to say that we have got some reaction coming in, the scottish national party spokesman has said that scottish families will be paying the price for tory failure after another rise in interest rates were announced. he said, millions of scottish families are paying the price for tory failure as the cost of living soars. it was exactly why scotland needs independence to escape the damage of westminster control. let's get reaction from the shadow chancellor, rachel reeves. she is treated, interest rates have risen to 4.5%. people will be racked ljy risen to 4.5%. people will be racked by anxiety after this news. the pm must admit his responsibility for the tory mortgage penalty, leaving so much worse off. we need a proper windfall tax on oil and gas giants now to ease the cost of living crisis. that is something that the labour party have been pushing for.

we will get more political reaction to this interest—rate rise. now we can speak to ian harris, whojoins me from norwich. he is a regional sales and marketing manager. welcome to you. thank you for being with us here. the 12th rate rise in a row from the bank of england. what impact do you seeing on property prices? impact do you seeing on property rices? ., , , impact do you seeing on property rices? , , . , ., ., prices? property prices to give a correction _ prices? property prices to give a correction in _ prices? property prices to give a correction in the _ prices? property prices to give a correction in the autumn - prices? property prices to give a correction in the autumn of i prices? property prices to give a correction in the autumn of last| correction in the autumn of last year, but in the context of 40 years of the state agency, i would describe what i see in the market as normal for an average of 40 years experience. it is not the hot market that we had in the aftermath of the pandemic, where there was a shortage of stock and high demand, that is corrected. i am seeing buyers wanting to buy, and sellers willing to sell. i think the attitude of the moment is that common sense will prevail, buyers will negotiate on

the asking price, and sellers recognise that they are not going to get the prices that they did a year or two years get the prices that they did a year ortwo years ago,... get the prices that they did a year or two years ago,... i get the prices that they did a year or two years ago,...— get the prices that they did a year or two years ago,... i think that is an important _ or two years ago,... i think that is an important point. _ or two years ago,... i think that is an important point. while - or two years ago,... i think that is an important point. while we i or two years ago,... i think that is an important point. while we are| an important point. while we are discussing the pain for so many people who may be struggling to pay their mortgages, there's a flip side that so many people are being priced out of the markets because the property market has been so hot, particularly around london and the south—east for many years. did they need to be a correction? i south-east for many years. did they need to be a correction?— need to be a correction? i think there needed _ need to be a correction? i think there needed to _ need to be a correction? i think there needed to be. _ need to be a correction? i think. there needed to be. affordability need to be a correction? i think- there needed to be. affordability is a significant issue for so many people, and the shortage of stock in so many markets means that those who can afford to grab a part of the market will do so. that has always been the driver for prices, particularly so in recent times. we had a reflection of that this week with the release of zero deposit

mortgages, which hark back to the 805 and 905 when we had a real surge in the market. it is just a means of helping those who are financially available to access the market without the big deposit, but with a track record that they are going to be able to pay them rent for the last 12 months.— be able to pay them rent for the last 12 months. junior this will be make it more _ last 12 months. junior this will be make it more difficult _ last 12 months. junior this will be make it more difficult for - last 12 months. junior this will be make it more difficult for people | last 12 months. junior this will be l make it more difficult for people to borrow, who will not be able to afford the price they felt they would be able to for mortgages, people who have been saving up for years in some instances? late people who have been saving up for years in some instances?— years in some instances? we had a lot of experience _ years in some instances? we had a lot of experience of _ years in some instances? we had a lot of experience of these - lot of experience of these conversations. as you have already referred, as of the 12th rate increase on the spin, and transactions are still happening. these interest rates increases are for a lot of people not deal breakers, just a factor to consider along with a lot of other factors to consider when you're making the big financial commitment of a house

purchase. financial commitment of a house urchase. , , ., purchase. very interesting to get our purchase. very interesting to get your thoughts. — purchase. very interesting to get your thoughts, thank _ purchase. very interesting to get your thoughts, thank you - purchase. very interesting to get your thoughts, thank you for i purchase. very interesting to get i your thoughts, thank you forjoining us. we can get the view of doctor nicola heflin, the chief economist at red flag alert. thank you for being with us. what is the reaction going to be to disk from businesses? is the first discussion of the effects on business. the main issue in the uk economy is the stagnation of growth. the bank has a split decision, it was a 7— to vote, i finely balanced decision, and ifind it is always very interesting when a major decision is come to to read some of the minority and dissenting voices from the monetary policy committee itself. there is very interesting work from one of them, who says that inflation during unprecedented terms of trade shock.

0ne unprecedented terms of trade shock. one of the minorities, one of the people on the committee, my own view wouldn't have been to raise rates again. i'm hoping we are done now for the reasons we have described, both for normal households and small to medium—sized enterprises trying to medium—sized enterprises trying to keep going in the current climate, interest rates rising, and it is 390 points from the base rate in the 12 rises. it is choking off the real economy, and all the costs are being passed on to households and small and medium—sized enterprises. this policy is not doing what it says on the ten, which is trying to reduce inflation, and households and smes are facing a perfect storm of higher costs, and these unaffordable inflationary rises. ., ., ~' these unaffordable inflationary rises. ., ., ~ ., these unaffordable inflationary rises. ., ., ~

rises. what would you like to see the bank rises. what would you like to see the itank of _ rises. what would you like to see the bank of england _ rises. what would you like to see the bank of england too, - rises. what would you like to see the bank of england too, as i rises. what would you like to see the bank of england too, as they| the bank of england too, as they have very few tools at their disposal?— have very few tools at their disosal? ,., ., ., ,., _ disposal? their boxed into a policy envelo e, disposal? their boxed into a policy envelope. and _ disposal? their boxed into a policy envelope, and this _ disposal? their boxed into a policy envelope, and this is _ disposal? their boxed into a policy envelope, and this is the - envelope, and this is the frustration of the matter. the feeling is that the bank does not want to embed inflation, by not offsetting the public sector wage claims are the strikes, but what is interesting is that the people who are being affected by these policy decisions, you would think they would be nailed on for a conservative mindset going forward. public servants, people with mortgages... as you have been showing on your cupboard already, these aren't people that have gambled recklessly, or whatever. they are people whose outgoings are fixed, people who are not massively going to swing in and out ofjobs in pursuit of pay rises, and a household in which you have, god forbid, one or two public—sector workers on a variable rate mortgage,

you're about thousands of pounds in the month which they do not have. as i was describing recently, if you have the 10% inflation rate, which as we know that the bank is seeking to challenge, that feels in real terms like three more days on the month. 10% more time, 10% more time between paycheques. the fact that so many british families and small to medium enterprises that are paycheque to paycheque, this is an indictment of the government's ability to pull levers to create many full of growth. growth is the way out of this. we need to grow the economy. we need to back those smes, we need access to finance for them to grow. i spend a lot of my time in the microdata, looking at the green shoots as well as the possibility for risk and the possibility for businesses going insolvent, and we are going to see 32,000 businesses at our top level, are forecast. businesses that might have been solved in a different climate. ——

solid to any different climate. if this was an economy that was able to move on to a growth footing, it would ease off this terrible pressure on middle income families, and small see conservative people who want a paycheque that covers their costs. who want a paycheque that covers their costs-— their costs. thank you for “oining us. just a reminder, i their costs. thank you for “oining us. just a reminder, in i their costs. thank you forjoining us. just a reminder, in the i their costs. thank you forjoining us. just a reminder, in the past. their costs. thank you forjoining. us. just a reminder, in the past 25 minutes or so we have had that decision from the bank of england. it was widely expected and confirmed that they were pulling up interest rates from 4.25% to 4.5%, a quarter percentage raise. the 12th rate rise in a row. this is the scene inside the bank of england, where we will be hearing directly from the monetary policy committee stop the governor of the bank of england, andrew bailey as well. more analysis and expedition is the reasoning behind this decision. the russian

feed into rising mortgages and business borrowing costs as we heard they are from nickel. part of the bank's attempt to rein in double digit rates of inflation, which stays persistent at over 10%. it was hopedin stays persistent at over 10%. it was hoped in march when the figures were last announced that it would have fallen below 10%. those falls are expected to occur more slowly as food prices continue to rise. the bank has upgraded the prospect for the uk economy. 0ur economics editor faisal islam was telling us that they are now no longer forecasting they are now no longer forecasting the economy will shrink, but will grow modestly over the next two years will stop as they were saying, this is from a pretty low base. we will have more on that very shortly, when we can go back to that press conference which should start in five minutes or so. let's go back to cheryl, who is talking about having

to move in with her parents due to rising costs and struggling to get a mortgage. welcome back to you. you have had 20 minutes or so to digest this. ., , , ., ., , this. the only shift to me as i don't know— this. the only shift to me as i don't know how _ this. the only shift to me as i don't know how long _ this. the only shift to me as i don't know how long i _ this. the only shift to me as i don't know how long i will- this. the only shift to me as i don't know how long i will be i this. the only shift to me as i i don't know how long i will be here, living at my parents. the older i get, the harder it will be for me to try and get a mortgage. as i said before, i do have a deposit. bromley is quite an expensive area to live, and when i am looking at properties for sale, and when i am looking at properties forsale, i'm and when i am looking at properties for sale, i'm completely out price. being self—employed, that obviously hinders sometimes getting a mortgage, you don't get five times the amount you are earning, i think you might get for, if you are lucky 4.5. i didn't foresee that in 4031 would be living at my parents�* with no end in sight. i don't know what

will happen to me, will i be able to live on my own again? i have no idea. it live on my own again? i have no idea. , . , live on my own again? i have no idea. , ., , ., , . idea. it is really tough, cheryl. we are talking — idea. it is really tough, cheryl. we are talking about _ idea. it is really tough, cheryl. we are talking about how _ idea. it is really tough, cheryl. we are talking about how the - idea. it is really tough, cheryl. we are talking about how the flip i idea. it is really tough, cheryl. we are talking about how the flip to i are talking about how the flip to this being 0pti prices coming down some areas. are you seeing that? is that a hope for you? iflat some areas. are you seeing that? is that a hope for you?— that a hope for you? not really. yes, they _ that a hope for you? not really. yes. they have _ that a hope for you? not really. yes, they have come _ that a hope for you? not really. yes, they have come down i that a hope for you? not really. - yes, they have come down marginally, but not, nothing substantial. nothing i can look to buy. i'm in a really strange position where, like i say, i have a deposit. i'm really strange position where, like isay, i have a deposit. i'm in really strange position where, like i say, i have a deposit. i'm in an odd position where i have a deposit, i have a salary every month that i have had for all my life, but i am not that readily looked at, and i've spoken to my mortgage advisor and said, what can i do? at the moment there's not a lot of options for me. he is giving me the maximum i can get a mortgage, and when i am looking out there there isn't really anything for me. i don't know... i

don't know what's going to happen to me, really. things will really have to change drastically, somehow. i know they have this new mortgage you were talking about earlier, but i don't know that that would help me, because there is a higher rate on that, so i don't know if that would benefit me, that is something i'll have to look into.— benefit me, that is something i'll have to look into. really appreciate ou have to look into. really appreciate you sharing — have to look into. really appreciate you sharing your— have to look into. really appreciate you sharing your story _ have to look into. really appreciate you sharing your story with - have to look into. really appreciate you sharing your story with us, i have to look into. really appreciate you sharing your story with us, we | you sharing your story with us, we wish you the of luck. let's go back to our business correspondence. cheryl's story will resonate with so many people who have been struggling, saving for years, they just cannot afford these rates. so many full are already paying their mortgage are terrified about what is to come when their fixed rate comes to come when their fixed rate comes to an end, or if they are on a tracker. you can act absolutely. when we look at the discussion we have had of the last half hour or so, if you think the economic figures are nothing to do with you, if you find the whole thing confusing, he was the evidence that it does affect— it does affect you, it affects you directl . it does affect you, it affects you directly- lt _ it does affect you, it affects you directly. it may _ it does affect you, it affects you directly. it may be _ it does affect you, it affects you directly. it may be the - it does affect you, it affects you

directly. it may be the cost i it does affect you, it affects you directly. it may be the cost of i it does affect you, it affects you i directly. it may be the cost of the weekly supermarket shop, it may be the cost of borrowing as we have been hearing just then. a reminder, a typical tracker rate mortgage holder is going to be paying more than £400 a month more than they were paying a couple of years ago. it's a huge impact on people, and they will be looking closely to see what happens next. this is what is crucial for the next half an hour what happens next. this is what is crucialfor the next half an hour or so. we move on quite quickly in this press conference, we will hear from andrew bailey, the governor of the bank of england as to the decision they have made today, but also where things may be sitting in the future. as far as i mentioned earlier, there is this prospect of more rate rises to come. clearly the impact of that will be more expensive borrowing people. if you look at the positive impacts for savers, the possibility of getting better returns on your

savings, and the bigger picture, part of the reason the bank feels it is able to raise rates, because people are staying in theirjobs. as a result, they do have some money to spendin a result, they do have some money to spend in some cases stop very difficult for a lot of people, but they are trying to target that nonessential spending, trying to dampen some of that demand on nonessential spending, and as a result, bring down, ultimately, the rate of inflation, which is at this incredible double—digit digit high. the governor of the bank of england will explain the decision and the reasons behind it and what may come welcome to the monetary report press conference and we are joined by the deputy governor for a monetary policy and the deputy governor for market strategy and resolution and the governor, andrew bailey.

welcome.