Favour over the past month. Weve seen sterling rise that will help temper the Price Pressures from imports. Weve also seen other pressures in the markets where theyve been raising some questions about the Bank Of Englands credibility, as in Mortgage Rates going up without decisions being made that has all calmed down, too. And the public� s expectations of where inflation is going, which were really very high, have now begun to temper. So thats also going in the banks favour. But a crucial issue is that they have raised rates by 5 the impact of that has really taken some time to filter through into the economy, there is sort of turning the type of rate rises on. Turning the tap. We are beginning to see the impact of that now weve seen in the Housing Market, weve seen it in some corporate insolvencies too. So that all leads back to this Balancing Act between crushing inflation, but avoiding a downturn its a tight rope and we are probably approaching the most narrow, trickiest part of that tight rope. Lets speak to george buckley, chief uk euro area economist at nomura. Good morning to you, george. So what do you think the bank will do today . I what do you think the bank will do toda . ~ f what do you think the bank will dotoda . ~ j. , do today . I think theyll raise Interest Rates, do today . I think theyll raise Interest Rates, there do today . I think theyll raise Interest Rates, there is do today . I think theyll raise Interest Rates, there is little l Interest Rates, there is little doubt theyll do that, everybody is forecasting it. But the big question is whether they will do a quarter of a percent or half a percent. Remember last time, every economist was looking for a quarter and they did a half. Could they repeat that . I think its unlikely because some of the Economic News weve heard has actually improved, weve seen inflation week and a bit, weve seen some of the surveys become a bit softer, weve seen employment not as strong, so i think all those reasons are reasons they wont do quite as much as they did last time. So much as they did last time. 50 looking much as they did last time. So looking at Interest Rates of 5. 25 percent today going forward, in your opinion. Of course well find out in lunchtime. What impact do you think thatll have . We are in that tricky stage we will start to see the impact that these last 14 rises have had . The reason for last 14 rises have had . The reason for that last 14 rises have had . The reason for that is last 14 rises have had . The reason for that is when last 14 rises have had . Iie reason for that is when you look at past monetary tightening, like the last 20 years or so, people used to have floating Rate Mortgages, but a lot of people have five year fixed but a lot of people have five yearfixed Rate Mortgages so they will be impacted for quite some time. Itll take a number of months, may be years before everybody goes through the system of having to refix their mortgages and pay more. So the impact on the economy might not be felt for some time yet, and thats a big risk in itself because it means that if you dont see, as the Bank Of England, the rise in Interest Rates having an effect on your economy, than they might do too much. And i think thats one of the risks as they could go too far. �. ,. ,. , i. Far. And how far do you think the ll far. And how far do you think theyll go . Far. And how far do you think theyll go . When far. And how far do you think theyll go . When do far. And how far do you think theyll go . When do you far. And how far do you think| theyll go . When do you think rates will peak and when will they start to go down again . I think the Bank Of England will be raising bit democrat Interest Rates for a few times yet, the markets are thinking theyll go almost a 6 , maybe 575. 5. 75 . When will theyll go almost a 6 , maybe 575. 5. 75 . When will they come down . I think theyll need to hold rates high to get rid of this inflation problem, but i wouldnt be surprised if towards the end of next year, we start to see Interest Rate cuts. I dont think we will get back to the same levels we started from their note, Interest Rates are permanently higher. Interest rates are permanently hiaher. ,. , higher. Interesting, george, thank yom higher. Interesting, george, thank you. Well higher. Interesting, george, thank you. Well be higher. Interesting, george, thank you. Well be across i higher. Interesting, george, i thank you. Well be across that news here on bbc news and we will update you as soon as the Bank Of England makes its announcements. To the us now and a story we first brought you this time yesterday, the move by Credit Rating agency fitch to strip the us of its top tier aaa Credit Rating. Shares on wall street have fallen sharply following the downgrade, and it has drawn an angry response from us treasury secretary janet yellen, who has called the decision puzzling and unwarranted. 0ur north America Business correspondent Michelle Fleury has more from new york. Just like everybody has a Credit Report to determine how much they can borrow, the Us Government has its own Credit Report and for the First Time Since 2011 that rating has been downgraded from aaa to aa fitch said. The assault on the Capital Onjanuary 6th was a factor in its decision, contributing to what they perceive as a steady deterioration in standards of governance over the last 20 years. From wall street to washington, reaction was swift us markets tumbled, with tech stocks leading the nasdaq lower while Bond Investors pushed up treasury yields higher. In washington, treasury secretary janet yellen reacted with anger. I strongly disagree with fitchs decision, and i believe it is entirely unwarranted. Its flawed assessment is based on outdated data and fails to reflect improvements across a range of indicators, including those related to governance that weve seen over the past two and a half years. 0ther Democrats Use the downgrade as an opportunity in the recent debt limit fight while republicans blame joe biden and democrats for trillions of dollars in new spending. Many economists dismissed the downgrade, including Jpmorgan Chase ceo jamie dimon, who called it ridiculous and said the decision ultimately didnt really matter. And he may not be wrong. Us treasuries, that is, Government Ious remain the bedrock of the Global Financial system, despite this latest knock to its reputation. Michelle flory there. Among the big names saying they are puzzled by the downgrade by fitch is mohamed el erian, chief economic adviser to the insurance giant allianz. He told the bbc the move wont affect the us economy, but it will fuel the political debate over the countrys finances so i dont think therell be an economic or fiscal impact by that, i mean that this announcement will not reduce investment, will not reduce the attractiveness of the us economy so thats the economy side. And then on the fiscal side, this in itself will not increase the Borrowing Cost for the us in fact, if you look at what they call credit default swaps, which measure credit worthiness, they hardly moved today. And you would expect them to move if the market was worried about that. So it will not impact the fiscal side or the economic side. But it will do is fuel an already polarised political narrative, both domestically and internationally. For some, though, the Fitch Downgrade has highlighted the important issue of americas soaring debt levels. Us National Debt is now over 32 trillion or almost 100,000 per citzen. You know, you look at the us debt to gdp in the year 2000, we were under 40 . Then you look at 2010, we were sitting around 85 . And now, we are at 126 . So we havent really had a cohesive plan as a country to reign in our debt at all, its been exploding on the upside whether it was in the Trump Administration or biden, weve got that issue. So i think when fitch talks about fiscal concerns, i dont think anyone can really argue with that. Lets look at the impact this has had on global markets, because this time yesterday was the initial reaction and we saw japan and hong kong were down 2 for most of the trading session, markets across asia were all a lot lower. Today thatis were all a lot lower. Today that is continuing. If we look at wall street, because michelle mentioned the fact there was a sell off on wall street, look at the tech waited nasdaq, down 2 . The snp 5000 the nasdaq, down 2 . The snp 5000 the snp 500 nasdaq, down 2 . The snp 5000 the snp 500 down 1. 38 . Lets speak to chris beauchamp, chief market analyst at ig. As far as the Share Markets are concerned, do you think this was an excuse to take some profits . Because certainly for japan on wall street, theyve had a good run lately. Exactly that, ithink had a good run lately. Exactly that, i think we had a good run lately. Exactly that, i think we are had a good run lately. Exactly that, i think we are now had a good run lately. Exactly that, i think we are now intol that, i think we are now into august, Trading Moves can be exaggerated. If you look at nasdaq with tech stocks, that was up 40 on the year. This downgrade doesnt tell us anything we dont already know, although us debt is on an unsustainable trajectory. Its unsustainable traectory. Its also important unsustainable trajectory. Its also important to point out the us lost its aaa crown back in 2011, and at the time there was a huge reaction of concern about what that meant whereas now, having been there before, it doesnt feel like such a big deal in terms of market reaction, you think . Exactly, fitch didnt reaction, you think . Exactly, fitch didnt tell reaction, you think . Exactly, fitch didnt tell us reaction, you think . Exactly, fitch didnt tell us anything l fitch didnt tell us anything we didnt already know. Certainly we know about this position on us debt. Janet yellen has a point, it doesnt change anything in terms of demand, they are still. But chris, uk demand, they are still. But chris, uk gdp demand, they are still. But chris, uk gdp data demand, they are still. But chris, uk gdp data ratio is around 85 . The us is at 126 and its likely to go up, thats what fitch is pointing out . ,. Out . Yes, they are right, there needs to out . Yes, they are right, there needs to be out . Yes, they are right, there needs to be a out . Yes, they are right, there needs to be a plan, out . Yes, they are right, there needs to be a plan, i out . Yes, they are right, there needs to be a plan, ithink needs to be a plan, i think its the lack of a plan that bothers everyone in the longer term. You are the Worlds Largest credit nation, so you do have some leeway, so the markets would like to see a plan to stop this rise which is continuing in a very dramatic fashion. ,. ,. ,. , continuing in a very dramatic fashion. ,. ,. , ~. , fashion. Chris, good to talk to ou. Lets return to the uk because were expecting more developments in the governments plan to boost britains chip industry. Back in may, ministers announced a National Semiconductor strategy and £1 billion in funding to boost Chip Production in the uk. But that was criticised by some in the industry as a drop in the ocean compared with the 52 billion being spent by the us or the 43 Billion Euros commited by the european union. The next step is to appoint a uk Semiconductor Advisory panel, bringing together people from industry, academia and government russ shaw is founder of tech london advocates, which campaigns for the future of the Uk Technology sector. Russ, we cant hear you, i think youre muted. No, we still cant hear you, im afraid. Lets persevere with that, Hopefully Russ will be able to join us that, Hopefully Russ will be able tojoin us injust a second. Have you tried the mute button . We will try and return to russ a little later in the programme. Around the world and across the uk, this is bbc news. Bbc news bringing you different stories from across the uk. When i take my sugar to tea all The Boys Arejealous of me. The blaze family are absolutely potty about teapots. Theyve spent a quarter of a Million Pounds on the biggest collection in the uk, everything from politicians to pop culture and some wild and wacky creations. Ive got a favourite, which is a Harley Davidson teapot, that was made, and i saw the man make it and i saw how hard it was for him to make it. And your one is. . Diana. Because diana was my favourite person. People say, why collect pots . And i always say, well, why not . J theres so many different weird and wonderful things. And once people get into the museum and they can actually see the different. Things that we do, weve got | ones that are size at this sortl of size and weve got a 12 foot teapot in the garden, | you never can believe the things that. People can make. Youre live with bbc news. To asia now where shares of Chinese Technology companies have fallen sharply after chinas cyberspace regulator said under 18s should be limited to two two hours a day on their smartphones. The Cyberspace Administration of china also wants to bar them from accessing the internet on their devices between 10pm and 8am. Katie silver in our Singapore Bureau has been looking into this. You know what, this would be a gift for me at home, i would be able to say to the kids, its not my decision, is the government. Youll make people would be surprised at how stringent these limits are, you can compare it to how their stomach or your kids use their screen time. Stomach or your kids use their screen time. That time limit is onl if screen time. That time limit is only if you screen time. That time limit is only if you are screen time. That time limit is only if you are between screen time. That time limit is only if you are between 1618, j only if you are between 16 18, if you are between 6 8, there only allowed one hour a day. If you are aged under eight years of age, a few minutes of screen time. Parents will be able to opt out of this and they are seeking feedback, the government, overthe seeking feedback, the government, over the next month before they put this into effect. As you say, huge impact on the share price. The Video Service app dropped about 7 . And ten sentiment which is the Company Behind it we chat, dropped about 3 . Will this create a huge headache for Tech Companies . And will it be so hard to implement that they just make bad news altogether . It is a headache, its a hot debate in my household every single day. Katie, thank you very much indeed. Lets return to the uk because were expecting more developments in the governments plan to boost britains chip industry. Russ shaw is founder of tech london advocates, which campaigns for the future of the Uk Technology sector. Russ, can we hear you . Russ, can we hearyou . I russ, can we hear you . I hope so, sally russ, can we hear you . I hope so, sally. Ironically russ, can we hear you . I hope so, sally. Ironically the russ, can we hear you . I hope so, sally. Ironically the tech i so, sally. Ironically the tech wasnt working so, sally. Ironically the tech wasnt working on so, sally. Ironically the tech wasnt working on this so, sally. Ironically the tech | wasnt working on this story. Talk us through this advisory panel, we think we might be hearing about it today, who do you think might be on it . I expect an announcement to come out later today, and we are looking at a combination of leaders from the industry, from government and academia to build the bridge between the Semiconductor Strategy announced in may and working with the private sector to ensure britain has a vibrant semiconductor ecosystem. Ross, for a lona semiconductor ecosystem. Ross, for a long time. Semiconductor ecosystem. Ross, for a long time, you semiconductor ecosystem. Ross, for a long time, you at semiconductor ecosystem. Ross, for a long time, you at london i for a long time, you at London Tech Advocates have been pushing the government to come up pushing the government to come up with a strategy for the semiconductor industry. When you look at the history of arm holdings which was ourjewel in the crown and how that all played out, or which is far too late to this . I played out, or which is far too late to this . Late to this . I dont think its too late. Late to this . I dont think its too late. I late to this . I dont think its too late. I think late to this . I dont think. Its too late. I think having late to this . I dont think i its too late. I think having a