lam element of this case. i am maryam moshiri and you have been with me covering the end of the trial of dominique pelicot. for more on the story, as always, you can go to the bbc�*s website. we have a live page they're being updated. from me and the team here in avignon, and the team in london, thank you for watching. goodbye. london, thank you for watching. goodb e. . ~ london, thank you for watching. goodbye- _ goodbye. and thank you very much to my _ goodbye. and thank you very much to my colleague - goodbye. and thank you very l much to my colleague maryam moshiri. as she said, you can continue to watch the action on the bbc news website or indeed iplayer, as we have been saying in the last hour, gisele pelicot thanked supporters after her ex—husband was jailed for 20 years for dragging and recruiting strangers to rape her. you are with bbc news and we

are turning our attention to the rest of the day's news. interest rates will remain unchanged. interest rates will remain unchanged. let's speak now to our economics editor, faisal islam. unchanged despite the news on recent wage rises. if you were expecting rates to change today, and they have been held at 4.7 5%, but under the hood of that decision there is some interesting dynamics. yesterday the us federal reserve did cut rates but then signalled pretty clearly that there would be fewer rate cuts over 2025 and that affected markets. markets have been betting there will be fewer rate cuts from the bank of england over the next year detail of their considerations that the 9—member committee

detail of their considerations that the 9—membé the nmittee both the impact of the budget on both firms whether or not they are going to increase prices or whether they will affect wages. significant hold and we await what happens next year. of course, we should explain that the bank has to try to keep inflation to its target which is 2%.- try to keep inflation to its target which is 2%. that is absolutely _ target which is 2%. that is absolutely right _ target which is 2%. that is absolutely right and - target which is 2%. that is absolutely right and so - target which is 2%. that is l absolutely right and so what you have had is that inflation has come down sharply from the highs we saw two years ago. it started to pick up a little, still within normal ranges. we think it is going to be around 3% at the beginning of next year. that could have concerned the bank the most. they could have signalled, perhaps we are not going to cut rates so much because inflation is a bit higher and by having higher interest rates cut then perhaps you are encouraging that

inflation in some way. but instead they are stressing that the growth performance of the uk economy is weaker than they expected and therefore perhaps that path of rate cuts next year, that gradual path, three orfour year, that gradual path, three or four rate cuts next year, that that is still, if you like, the central objective, the central path, for the likely rates next year. there are a lot of uncertainties around the world. we don't know exactly what the trump trade tariffs, these taxes on imports and exports, we don't know how that will transpire. as i was saying we don't know what the impact of this budget national insurance rise is. how they will apply in the uk economy. will firms squeeze away just because. will they squeeze prices? will it be a combination? we are waiting for some evidence, some data and reaction from the actual economy. but for now the sense i get from the bank is that yes, they have held, but they are a little more concerned about the strength of the weakness, i should say, of the

uk economy. more concern, or as concerned as they are, about inflation being too stubborn. i mentioned in the introduction about wages because they have been going up. that has an impact on inflation and going forward do the banks think that the wages will come down or are they concerned they may carry on rising? this is a critical question for next year. we don't really know a lot of the data, the labour market data, isn't at its most expensive right now. the surveys aren't working as well as they used to. the bank asks many firms, what are you going to do next year? and indications that wage settlements, which were four or 5% this year, going to be a little bit lower — 3—4% next year. that is the indication that companies have given.

there are a lot of moving parts in terms of that national insurance rise which is coming insurance rise which is coming in april. a rise national living wage. that balancing act is exactly the sort of thing that the banks want to make 9—member committee will be looking forfor evidence 9—member committee will be looking for for evidence as to whether inflationary pressures are starting to temper permanently. that is what they are looking for. the answer is they don't know. indications are that they are starting to temper. they will look for confirmation of that to underpin a series of rate cuts next year. 50 underpin a series of rate cuts next year-— next year. so that is the economics, _ next year. so that is the economics, but - next year. so that is the economics, but of - next year. so that is the | economics, but of course next year. so that is the - economics, but of course any economics, but of course any economics has a political angle. how do you think this will be viewed in downing street? i will be viewed in downing street? ~' ., street? i think the other thing auoin on street? i think the other thing going on is — street? i think the other thing going on is that _ street? i think the other thing going on is that in _ street? i think the other thing going on is that in the - street? i think the other thing | going on is that in the markets we have seen long—term borrowing rates which are related to decisions made here but also related to the amount of borrowing that the government does. we have seen those go up for the us and go up those go up for the us and go up for the uk versus europe.

there is a bit of a split now. it is acknowledged here in the bank of england minutes that long—term borrowing costs for the us and uk have started to tick up whereas they have gone down in continental europe. that does have an impact and could have an impact in terms of trade—offs in terms of tax and spend an borrowing. there will be another office for budget responsibility report calculating whether the government is meeting its borrowing targets in march, at the end of march. that matters. could they have to back more spending cuts? that is the sort of thing that has been floated. there is due to be another budget for another year. there is due to be another budget foranotheryear. in budget for another year. in general terms the budget foranotheryear. in general terms the updated forecast for the bank that the economy is not growing, that is not great for the government. it has made growth its central mission. of italy right now, in terms of the british consumer, the british voter, they are sensitive with the three long years of rolling crisis behind

us, all that sort of thing. the end of result of that is that the economy is not growing in the economy is not growing in the final quarter of 2024. that is not where you want to be. and this government says it is the central aim to get growth notjust the central aim to get growth not just a the central aim to get growth notjust a band running again but the highest in the g7 by the end of this parliamentary term. that matters a huge amount politically but the economics of settling, i think, on some gradual rate cuts next year but growth underperforming, as we and 2024. ' , underperforming, as we and 2024. ~ , . ., underperforming, as we and 2024. g a ., y a, underperforming, as we and 2024. g y a, 2024. my director in my ear was askin: , 2024. my director in my ear was asking. and _ 2024. my director in my ear was asking. and is — 2024. my director in my ear was asking, and is probably - 2024. my director in my ear was asking, and is probably a - asking, and is probably a question a lot of people will be asking, what is going to happen to my mortgage rate next year? is it going to come down? i don't know whether you are a betting man but do you think they will come down next year? there is a difference between the short—term rate, which is

what these guys decide. that is likely to come down at some pace undetermined. if nothing changed we would expect three rate cuts next year, may before, but all those uncertainties that i talked about. the mortgage rates people pay a slightly different. they are set in the markets, they are related to these decisions, but they are impacted by the credibility of the government, how much borrowing they are doing, what is happening inning in america, what is happening in currencies, trade tariffs. the net result of all of this is that those borrowing rates for a five year fixed mortgage is that it has come down from the heights of a couple of years ago but has popped back up and sort of stabilised where they are. it is difficult to tell how much more they will move. shorter term mortgage rates may come down a bit as the bank of england cuts interest rates next year. the net result is it is complicated, but they have come down somewhat. some

people, obviously, are still on low mortgage rates from three, four or five years ago and are rolling off those. still millions of households experience this in terms of rates going up. it is complicated these long mortgage rates currently have ticked up a little but are down where they were a year ago. faisal islam, they were a year ago. faisal islam. as — they were a year ago. faisal islam, as always, _ they were a year ago. faisal islam, as always, thank- they were a year ago. faisal islam, as always, thank you they were a year ago. faisal. islam, as always, thank you for your insightful. 0ur economics editor. let's speak now to susannah streeter, head of money and markets at hargreaves lansdown. shejoins us from she joins us from bristol. were you surprised at the remaining the same?— the same? certainly not surprised. _ the same? certainly not surprised. it _ the same? certainly not surprised. it was - the same? certainly not surprised. it was widely| surprised. it was widely predicted and certainly we do seem to have a chill spreading before christmas with the economy stagnating, interest rate cuts on ice and cold water being thrown on the hopes for successive rate cuts next year. the financial markets are only pricing in around two interest

rate cuts next year. that of course will be concerning to those people who are looking for another mortgage deal next year. it is likely to mean that some of those deals might creep 1526