interest rates have been held at 5.25% for the seventh time in a row by the bank of england, despite the rate of inflation hitting the bank's target level of 2% for the time in three years. of 2% for the first time in three years. economists have predicted that interest rates, which are currently at a 16—year—high, won't be cut until august. with more, here's our chief economics correspondent, dharshini david. ok, so it's four bedrooms... first—time buyerjames has his eye on his dream home in coventry. but getting the keys to the door has been more challenging than expected as higher mortgage rates have made the first rung of the housing ladder harder to grasp. we definitely had to make some cutbacks as a couple and look at our financial plan to see if we could afford the mortgage. with the rates being high, we've had to save for effectively another year to come into line with that. it's also understanding, yeah, the term of the mortgage, you know, from looking at it, it's now 30 years long, which is going to put me into retirement age. which then i now have to think about my pension, my retirement planning as well, before buying a house. and the struggle continues after you get over the threshold. anyone taking out a new mortgage or remortgaging will typically pay £300 more per month than they did just a few years ago. for the bank of england has raised interest rates 1a times to combat inflation, and it's been stuck at 5.25% since last year because although inflation has come back down to that 2% target, some items, for example the price of restaurant meals and other services, and some wages, are rising more sharply. so the bank is concerned about how much inflation could rebound and itsjob is to keep it down. as millions face higher repayments, the numberfalling behind with those is rising. but arrears and repossessions remain very low compared to the past as lenders offer more help. for some people it has been very difficult. the volatility in mortgage rates has been quite significant. and if you're coming off a fixed rate atjust the wrong time then some people have had very significant upticks in their repayments. what we are seeing, though, is that's not necessarily flowing through into arrears. and while arrears are starting to tick up across the industry, they are still significantly below the peaks we would have seen post the global financial crisis. with the inflation cloud slowly clearing at the bank of england, some economists think policymakers may be in the mood to cut rates as soon as august. in the meantime, borrowers will continue to pay the price. dharshini david, bbc news. let's speak now to our economics editor faisal islam. faisal, why has the bank of england made this decision? good afternoon. the big headline is that rates have been kept unchanged at that 16 year high which is not great news for borrowers, as we have been hearing. better news for savers who have been enjoying higher interest rates. underneath the headline decision is something quite interesting happening. because when you look at the minutes of what is a 9—member committee, yes, only two members voted for a cut but a crucial group seem to be changing their mind and my understanding that could include the bank of england governor andrew bailey. and there is a brewing majority for a rate cut. and it was finely balanced whether or not they would have been a rate cut at this meeting. and it looks like that is the most likely outcome to the next meeting in august. why do we say that is interesting, when inflation came out yesterday, the figures underline the fact that it had hit a target was the more general problem which is services inflation, hairdressers, restaurants, hotels and the like, that was proving quite sticky. that inflation level was coming down very slowly and that's the sort of thing that makes the bank of england pours on interest—rate cuts. it looks like the crucial group of swing voters on a 9—member committee is playing that down was that they say it is mainly one—off factors, preparing the ground for rate cuts in august. they didn't quite get there this month in june but it looks very much on the cards on the 1st of august. june but it looks very much on the cards on the lst of august.- cards on the 1st of august. faisal islam, cards on the 1st of august. faisal islam. thank— cards on the 1st of august. faisal islam, thank you. _ the bbc has learned that the conservative party's director of campaigning is being looked into by the gambling commission over an alleged bet on the timing of the general election. tony lee, and his wife laura saunders — who is the party's candidate in bristol north west — are both being looked into. this morning it emerged that mr lee has taken a leave of absence from his job, and left the campaign yesterday. our political correspondent helen catt has the latest. we will have a general election on the 4th we will have a general election on the 11th ofjuly. jut? we will have a general election on the ltth ofjuly-_ the 4th ofjuly. july elections are a rari . the 4th ofjuly. july elections are a rarity- now _ the 4th ofjuly. july elections are a rarity. now the _ the 4th ofjuly. july elections are a rarity. now the gambling - a rarity. now the gambling commission is looking into some of the bets that were placed on one being called. the use of confidential information in order to gain an unfairadvantage confidential information in order to gain an unfair advantage when betting may be a criminal offence. we now know that among those being looked into our tony lee, who is the conservative party's director of campaigning, and his wife laura saunders, who is a candidate. tony lee took a leave of absence from his job yesterday. both laura saunders and tony lee have been approached for comment but haven't replied. on a visit earlier, the housing secretary michael gove admitted it didn't look good. it is secretary michael gove admitted it didn't look good.— didn't look good. it is quite ro erl didn't look good. it is quite preperly being _ didn't look good. it is quite properly being investigated didn't look good. it is quite - properly being investigated now. didn't look good. it is quite _ properly being investigated now. how does it look? well, as i say, you and others looking at this world, i'm sure, be doing much more than just raising an eyebrow. but it's important for me and all the candidates out there that while we acknowledge that this is not great, that we concentrate on the real issues in this campaign. labour says it's not good — issues in this campaign. labour says it's not good enough _ issues in this campaign. labour says it's not good enough and _ issues in this campaign. labour says it's not good enough and wants - it's not good enough and wants action taken.— it's not good enough and wants action taken. , .. ., , ., action taken. this candidate should be susoended- _ action taken. this candidate should be suspended. and _ action taken. this candidate should be suspended. and it's _ action taken. this candidate should be suspended. and it's very - action taken. this candidate should be suspended. and it's very telling | be suspended. and it's very telling that rishi — be suspended. and it's very telling that rishi sunak has not already done _ that rishi sunak has not already done that. it was one of my candidates they would be gone and their feet _ candidates they would be gone and their feet wouldn't have touched the ftoor~ _ their feet wouldn't have touched the floor. there is a wider point here we touch— floor. there is a wider point here we touch on. _ floor. there is a wider point here we touch on, we have now had 14 years _ we touch on, we have now had 14 years of— we touch on, we have now had 14 years of chaos, division, politics being _ years of chaos, division, politics being about self entitlement. and politics— being about self entitlement. and politics needs to be about service, about _ politics needs to be about service, about public service. the politics needs to be about service, about public service.— about public service. the liberal democrats _ about public service. the liberal democrats also _ about public service. the liberal democrats also want _ about public service. the liberal democrats also want to - about public service. the liberal democrats also want to see - about public service. the liberal democrats also want to see a i about public service. the liberal. democrats also want to see a firm hand. ~ ~' , ., , ., hand. we think there should be a cabinet office _ hand. we think there should be a cabinet office inquiry. _ hand. we think there should be a cabinet office inquiry. i - hand. we think there should be a cabinet office inquiry. i think- hand. we think there should be a cabinet office inquiry. i think the | cabinet office inquiry. i think the gambling commission will rightly look at this and i hope they come down heavy on those people who look like, and i haven't seen the details, but they look like they have acted illegally and immorally. earlier this month craig williams, another candidate and formerly the prime minister's parliamentary aide admitted he had placed a bet on the election date and apologised. did ou election date and apologised. did you have inside information when you made _ you have inside information when you made the _ you have inside information when you made the bet? i you have inside information when you made the bet?— you have inside information when you made the bet? i made a huge error of 'udument. made the bet? i made a huge error of judgment i — made the bet? i made a huge error of judgment i made _ made the bet? i made a huge error of judgment. i made a _ made the bet? i made a huge error of judgment. i made a huge _ made the bet? i made a huge error of judgment. i made a huge error- made the bet? i made a huge error of judgment. i made a huge error of- judgment. i made a huge error of 'udument judgment. i made a huge error of judgment stop — judgment. i made a huge error of judgment stop what _ judgment. i made a huge error of judgment stop what he _ judgment. i made a huge error of judgment stop what he is - judgment. i made a huge error of judgment stop what he is being l judgment stop what he is being looked into it too. yesterday one of rishi sunak�*s police close protection officers was arrested over alleged bets over the election date. the gambling commission has been contacted over a small number of individuals. as more details emerge the pressure on rishi sunak to take action is only likely to grow. helen catt, bbc news, westminster. you can see a full list of candidates standing in bristol north west in the general election on your screen 110w. you can also find those details on the bbc news website. our political correspondent, helen catt, joins us now. helen, this is yet another distraction for the prime minister during the campaign, isn't it? it is, and another damaging story that raises questions and potential problems both on a practical level, we are two weeks from polling day and to have lost a key figure like your director of campaigning at this stage, that raises some practical questions for the conservative campaign. but more than that it allows the opposition to raise questions about rishi sunak�*s leadership. and you saw keir starmer and ed davey doing that they are. and about integrity within the conservative party, which of course rishi sunak promised on the steps of downing street when he took office. this comes ahead of that question time programme later where rishi sunak will be directly facing voters in a live studio audience. and in a campaign where we haven't really seen him or sir keir starmer do that very often, engaging with voters in that way, that's already a risky scenario and one that rishi sunak is going into against the backdrop of yet another negative story. helen catt, yet another negative story. helen catt. thank _ yet another negative story. helen catt. thank you- _ the scottish green party have promised a "transformative vision" for the country at their election manifesto launch. they're pledging to introduce a wealth tax on the richest people in the uk, an end to oil and gas companies being able to advertise, and a stop on all subsidies forfossilfuels. the plans were presented this morning by the party's co—leaders, patrick harvie and lorna slater. the supreme court has ruled that a council should have considered the full environmental effects of burning oilfrom new wells. it's a landmark decision which may call future uk oil and gas projects into question. the decision against surrey county council could mean that local authorities now have to assess the long—term impacts of fossil fuel projects, notjust the immediate ones. our climate editor, justin rowlatt, joins us now. justin, can you explain why this ruling is potentially so significant? lets say that you discover oil in your back garden. in the past you would have had to do an environmental assessment, you would have to look at the impact it would have to look at the impact it would have on the immediate environment of your garden, so your herbaceous borders, the lawn and the trees, maybe some of the carbon monoxide emissions reduced when you duck that well. now they are saying you also have to take into account all the impacts of the carbon dioxide produced when you burn the oil you would be pumping from your garden. so a much bigger environmental impact. in fact, so a much bigger environmental impact. infact, a so a much bigger environmental impact. in fact, a global one. so a much bigger environmental impact. infact, a global one. so while that doesn't stop future oil and gas projects, or indeed coal projects in the uk, what it does is it ways the scales more heavily against them. what campaigners hear outside the supreme court where i am now, were saying in the immediate aftermath of this judgment was that big projects like for example the rosebank oil field off the coast of the shetlands, there is a big offshore gas project called jackdaw, and possibly even the new coal mine proposed for whitehaven in cumbria, all of those projects could be called into question because of the new requirements to look at the wider impact of these kinds of developments as a result of the judgment made here today at the supreme court today.— judgment made here today at the supreme court today. justin rowlatt, thank ou. police investigations are continuing into the death of a baby girl who was attacked by the family's pet dog. the seven—month—old was taken to hospital in coventry after being bitten on the head, but died a short time later. police have said the dog was not classed as a dangerous breed, and was removed from the home the same day and humanely destroyed. sir ian mckellen will not return to his role as sirjohn falstaff in the production of player kings for its final london dates, after he fell from the stage during a performance. the 85—year—old—actor says he is having "physiotherapy, light exercise and a lot of essential rest at home" after three nights recovering in hospital. police rescue teams are continuing to search for a british teenager, three days after he was last seen during a holiday in tenerife. 19—year—old jay slater from lancashire flew to the island for a music festival. his mum has said it was his first holiday abroad with friends. our correpondent lauren moss reports. a frantic search is into another day for missing lancashire teenagerjay slater, last seen on monday. rescue teams continue to comb this mountainous region in tenerife as temperatures climb into the 20s. having fun with friends, this video ofjay, who is 19, was posted on social media the day before he vanished on his first holiday abroad without his family. his mother, who has flown out to help in the search, has called it an absolute living nightmare. jay had travelled to tenerife with a friend and spent the weekend at the nrg music festival. after meeting people on sunday night he travelled to the north—west of the island near the mountainous rural de teno park area. around 9am on monday morning, jay called a friend saying he was going to head back to their accommodation around 40 kilometres away, a 45—minute drive or ten—hour walk. it was the last time anyone heard from jay or saw him. he was wearing this grey t—shirt with green shoulders when he disappeared. his friend says jay had planned to walk back. he said he only had 1% battery on his phone before the call he said he only had 1% battery on his phone before the call cut out, and needed water. the foreign office say they are supporting jay's family, as hope holds out to find the teenager, described as the life and soul and a beautiful boy. lauren moss, bbc news. nick garnett is in tenerife and joins us now. nick, what's the latest on the search? this is the area that the police are concentrating their search on. we have seen teams of officers out looking through the undergrowth and trees. they have been down in the valley behind me looking around farm buildings, any buildings they can, to try and see any sign of him. but with 72 hours gone, you have to wonder where on earth he was going and what he thought... where he thought he could get to. we have just been speaking to one of the relatives, one of his friends, who said what she wants now is the british police to come out to help with the search, because they may be able to do more.— able to do more. thank you, nick garnett in — able to do more. thank you, nick garnett in tenerife. _ the time is 1:15. our top story this afternoon... interest rates have been held at 5.25% for the seventh time in a row by the bank of england, despite the rate of inflation hitting the bank's target. and scotland's euro 2024 hopes are still alive after a precious point last night, as england aim for a second campaign win against denmark later. coming up on sportsday on bbc news in the next 15 minutes... away from the euros, leicester city have named the former nottingham forest boss steve cooper as their new manager. he says he's looking forward to the challenge. some countries around the world have been experiencing extreme heatwaves. in saudia arabia, at least 550 muslim worshippers have died during the annual hajj pilgrimage. unconfirmed reports suggest the actual death toll could be over 1,000, as temperatures soar to 51 degrees celsius. in the united states, millions of people are experiencing record highs and heat alerts for the fourth day in a row. wildfires in new mexico and california have forced thousands to leave their homes. and india is also affected — the capital, delhi, is suffering a prolonged heatwave and daily temperatures have been above 45 degrees celsius since may. our south asia correspondent samira hussain is there for us. samira, how are people coping? it is actually really quite difficult because this heatwave has been going on for so many weeks. it has been in some places, and some parts of the country, pretty relentless. if you go further north of where we are in the capital, delhi, some cities have hit temperatures of 50 celsius and in terms of who this impacts the most, it is those that are more susceptible, spending time outside. in big cities, it is a country that depends on day labourers, people working outside and in the sun, and they are the ones who are greatly affected by the intense temperatures. i was at a hospital just yesterday and they said they have seen a dramatic increase in heatstroke to victims and have had several die because by the time people realise how ill they are because of the heat, it is already too late. there is a lot of anticipation for the monsoon season and that should be starting very soon and it should give some respite thatis soon and it should give some respite that is part of india and fu