Does happen, if youve got a £200,000 mortgage on a 25 year repayment term , thats going to repayment term, thats going to add about £30 a month, 3 to £400 add about £30 a month, 3 to £400 a year to your mortgage payments just from that quarter point Interest Rate rise, if indeed thatis Interest Rate rise, if indeed that is what happens. Yeah. And of course, the other thing is that theyre going to give indication going to give an indication their as where they see their forecast as where they see things going and whether well have rates. It is have more Interest Rates. It is 5. 25. Just getting out 5. 25. Were just getting out through 5. 25, up another quarter of a as expected for many economists , thats really economists, thats really interesting, mark, you know, because just a couple of weeks ago, a lot of people would have said that the bank of england needs half point rise needs to do a half point rise from 5 to 5. 5, given that inflation in the uk is unusually high. Were at 7. 9 in june and we had thats much , much higher had thats much, much higher than in the eurozone where inflation is averaging 5. 5. And inflation is averaging 5. 5. And in america 3 repeat 3. Inflation is across the pond. In the us. So we do still have high the us. So we do still have high Interest Rates and high inflation. I think the fact that inflation. I think the fact that inflation came down from 8. 7 to 7. 9, its quite a chunky fall. That means that the bank of england feels it didnt have to raise Interest Rates by half a point. Itsjust raise Interest Rates by half a point. Its just gone for a quarter point rise. Itll be interesting to see the language change Monetary Policy change that the Monetary PolicyCommittee PressCommittee Releases in its press communique will be looking at that at a moment see if there that at a moment to see if there are any clues at all. But for now, its a quarter point rise to 5. 25. The 14th successive Interest Rate rise in a row since december 2021. And i repeat , if youve got a £200,000 repeat, if youve got a £200,000 mortgage at about 6 or 6. 2, 5 or whatever it is, and youre on a 25 year repayment term. This one move today from the bank of england is going to add about £30 a month for about 3 or £400 a year to your mortgage payments. Just two days. Interest rate rise. So this is Interest Rate rise. So this is a serious decision that will affect millions and millions of people. And let us see how quick people. And let us see how quick the banks are to pass on this Interest Rate rise to savers because theyve been pretty sluggish over recent months. Has this announcement liam nudged us further towards a possible recession. In possible recession. In interesting you say that pip. I think if it had been a half point rise from 5 to 5. 5, a lot of people would say, my god, the bank of england is trying to almost provoke a recession. A almost provoke a recession. A recession is two successive quarters of negative economic growth. The bank of england, by growth. The bank of england, by the way, in that building behind me, were predicting uk me, they were predicting the uk would go into recession. It hasnt its been pretty hasnt yet. Its been pretty resilient. Our economy was still resilient. Our economy was still attracting a lot of inward investment in this country. Consumer despite Consumer Sentiment, despite being by all those being battered by all those Interest Rate rises, is pretty resilient in this country, as is Business Investment. But having Business Investment. But having said that, this quarter point rise will also attract criticism because its the 14th rise in a row. Some people were calling row. Some people were calling for Interest Rates to be held, including myself. Ive been saying that since march or april. Given that the rises in Interest Rates that weve already have work with long and variable lags , it takes a long variable lags, it takes a long time for Monetary Policy. Interest rate rises to feed through, not to mortgage payments but to broader economic behaviour, not least Business Investment and so on. So i think the bank of england steered a middle ground here between a big chunky 50 basis point rise to 5. 5 and keeping Interest Rates on hold at 5. So its a quarter point rise. What we expect did, as i say, with a £200,000 mortgage on a 25 year term. Todays decision alone will add around £30 a month, around 3 to £400 a year to the mortgage payments of a household while youre speaking, liam, were watching a pictures of protest outside the bank of england. Outside the bank of england. Positive money protest leaders who are calling for a windfall tax on banks. We didnt windfall tax on banks. We didnt see such demonstrations last time. There was a rise, did we . No, we didnt. And we should be absolutely clear. The pictures that youre seeing that im talking over now are they were from earlier this morning where a protest group called positive money came to the bank of england here in threadneedle street in the city of london. If i can just look away for a moment. There are no protests here. Now, you can take my word for it. What do those campaigners want . They want to see Interest Rate rises stalled. Im sure quite a lot of mortgage holders would agree with them, even if lots people whove even if lots of people whove got savings wouldnt. Got savings wouldnt. Liam, im just going to interrupt you because we got details the details coming through from the monetary which details coming through from the morexplained which details coming through from the morexplained is which details coming through from the morexplained is looking which details coming through from the morexplained is looking to which details coming through from the morexplained is looking to who h you explained is looking to who voted which way. Six members of the nine Strong Committee voting to increase, but two others, Jonathan Haskel and Catherine Mann , voted for a half point mann, voted for a half point increase. So even going further, only one swat duringa, preferring to keep the rate at 5. Now thats interesting. There was even a decision or a contention that, you know, it had to go even further. It contention that, you know, it had to go even further. It is. And as i predicted, its a its a three way split, which is unusual on the Monetary Policy committee. Youve got a member there, a relatively new member from the London School of economics , voting to keep rates economics, voting to keep rates on hold at 5. Youve got two other members voting for 5. 5 and then you had the majority , and then you had the majority, six of the nine voted to keep rates on hold at 5. 25. I think what this shows, mark, when youve got a three way split is theres lots of confusion and uncertainty and that for me, the fact that you had somebody who was prepared to go with what ive been saying to keep rates on hold, which was a heretical point of view until just a few weeks shows that maybe weeks ago, shows that maybe the bank england coming round bank of england is coming round to view that uk interest to the view that uk Interest Rates have now peaked. I rates have now peaked. I certainly hope that thats the case much will depend on the latest Inflation Numbers that come out in couple of weeks come out in a couple of weeks time and particularly also on wage data keeps on wage data. If wage data keeps on throwing out increases on annual bafis throwing out increases on annual basis of six, seven, 8 as it has done in recent months, then the Monetary Policy committee will be worried that were still in this wage price spiral right now, at least its pretty much as expected and including as i just predicted earlier, that three way split, thats a very Interesting Development indeed and a bit more coming through from them. From them. Liam, which which well talk about. Liam, which which well talk about. But in liam, which which well talk about. But in terms of their forecasting , they say that forecasting, they say that inflation expected to drop below 5 in the final few months of 2023. That would obviously meet the Prime Ministers target. They predict that the consumer pfices they predict that the Consumer Prices index, cpi inflation up 4. 9 for the final quarter , but 4. 9 for the final quarter, but remain above 2, which is the target until mid 2025. Now, what does that tell us about where the rates may go in these coming months . Months . It suggests that the bank of england isnt going to do anything rash between now and then if theyre predicting 4. 9 across the quarter , thats across the quarter, thats october, november and december. That means by december it could be you know, it could start with a three rather than a four or a five. That prediction from the bank of england will be music to the ears of Prime Minister rishi sunak, who, of course, is grappling with the knowledge that his personal house is being protested or surrounded by protesters up there in North Yorkshire. But he has got this pledge that inflation will fall to half over this year. And of course, when he made that pledge, it was 10. 1 back at the beginning of this year. So under 5. And hell be seen to have fulfilled that one his five fulfilled that one of his five pledges we go into 2024, pledges as we go into 2024, which is going to be almost certainly a general election year. Certainly a general election year. So i certainly a general election year. So i think this suggests that the bank of england feels the inflation reduction is still very high, but its back on track. So i think if we do see increases in Interest Rates, they wont be half increases, they wont be half increases, 50 basis point increases if there are going to be any more and there may be no more, this may be the peak. If there are going to be more, therell going to be any more, therell be quarter point rises, but still to reiterate, this still just to reiterate, this quarter rise, its less quarter point rise, its less than people on the monetary than some people on the Monetary Policy committee wanted , but policy committee wanted, but it still very implications still has very real implications out there across country. A out there across the country. A quarter point rise in Interest Rates. If youve got a £200,000 rates. If youve got a £200,000 mortgage, ill say it again over a 25 year term thats currently around six, 6. 25. Thats going to add £30 odd a month to your mortgage payments. Just this rise today, which is 3 to £400 a yean rise today, which is 3 to £400 a year, you know, thats serious money for any family. Year, you know, thats serious money for any family. And thats money for any family. And thats why the bank of england needs to think really, really hard about whether or not its going to raise rates again. Raise rates again. Liam, thanks very much for your analysis and insight there. We will return to you, but lets hear now from head of lets hear now from the head of the positive money campaign. Theyve protesting , as liam theyve been protesting, as liam mentioned, outside the bank of england todays decision. England before todays decision. So the bank of englands relentless hiking of Interest Rates have caused big bank profits to balloon. The four profits to balloon. The four biggest banks in the have biggest banks in the uk have made nearly £30 billion in profit in the first half of 2023 alone. Thats nearly 80 more than the same time last year. This these profits are unearned. Theyve come about the banks not lift finger. Not having to lift a finger. Theyre direct result of theyre the direct result of Interest Rate hikes by the bank of. So were calling on of england. So were calling on the those rate the bank to stop those rate hikes and were calling on the government to step in and introduce tax on introduce a windfall tax on those bank profits. Those big bank profits. Well, protests falling on deaf because weve that deaf ears because weve had that quarter is although quarter rise is although indications that two members of the committee wanted to go a half a but more reaction coming through. But reflect that through. But lets reflect that those most directly hit are the millions of homeowners and indeed renters across the country. Country. Yes, some will see their repayments rise, as liam was just saying, as fixed Term Contracts come to an end. Others will face hikes in their rents as landlords struggle to keep up with rising costs. With rising costs. Lets get more now to our south east of england. Reporter ray addison, whos down in crawley in sussex an estate crawley in sussex with an estate agent there. And obviously agent there. And ray, obviously another rise, but perhaps indicates that things are going to start topping off now. Well, to start topping off now. Well, thats certainly the hope, because these continuous Interest Rate rises have been having a huge impact on the Housing Market, particularly in the south east, where theyve been experience seeing the biggest fall in prices due to these high Mortgage Rates forcing homeowners to try and get out and get that sort of monkey off their back, if you like , because of the cost of like, because of the cost of their mortgage. According to website zoopla. Across the website zoopla. Across the region, 8 of homes listed for sale did have reductions of 5 or more. In the last month in july. Now Darren Greenaway is an owner , the owner of greenaway owner, the owner of greenaway residential. Hes been in the trade for 30 years and he joins me now. Darren thanks very much for being here. Whats your reaction . Its just a quarter of a is this good news or a step in the right direction . It could have been worse , it could have been worse, thats for sure. I mean, i was expecting that we might have seen half a today. A seen half a again today. So a quarter of a is a good thing. Unfortunately i think its going to continue putting pressure on the market. The other the Housing Market. The other side of that, though, is august. So its going to be naturally quiet hopefully when people quiet as hopefully when people return. Its return from holiday. Its old news, it just depends whats news, but it just depends whats going in the going to happen. In the last quarter going to happen. In the last quesor down. Well, its not so its down. Well, its not down, but its smaller down, but its a smaller increase in a series of raises. Increase in a series of raises. What are we how has it been affecting the market in crawley overall this year . Weve seen sustained pressure on the Housing Market. At the start of the year, the market started slow by the second started to slow by the second quarter, we then started seeing the reductions in quarter, we then started seeing the weveeductions in quarter, we then started seeing the weve startedis in quarter, we then started seeing the weve started now in quarter, we then started seeing the weve started now seeing a and weve started now seeing a defined negative trend happening over last few months in over the last few months in terms of the obviously lower pnces terms of the obviously lower prices are good for buyers, but these higher Mortgage Rates that were seeing as a result are then sort of reducing the opfions then sort of reducing the options for those who do want to buy and are in a position to buy. What are they saying to you when they when they come here to greenaway there have been problems with a lot of First Time Buyers where theyve been worked out their costings and then obviously how much they can afford then when the afford and then when the interest have been Interest Rates have been increasing, come back increasing, theyve come back and said theyve had to withdraw from due to they cant from purchases due to they cant afford that mortgage now. Afford that mortgage now. Have obviously said and a few have obviously said that need to reduce what that they need to reduce what theyre looking price range. Now you actually run a Charitable Foundation well. Now you actually run a chargreenawaydation well. Now you actually run a chargreenaway foundation. Ll. Now you actually run a chargreenaway foundation. And the greenaway foundation. And youve out that youve been finding out that more people are coming to you needing help and assistance with sort of everyday cost of living type type stuff. Yeah , most of what we did was yeah, most of what we did was at christmas, were at christmas, but were now helping families throughout the year finding your year and were finding your average working family are just keeping their head above water, are struggling to feed their children obviously buy children and obviously buy School Things and School Uniforms and things and all the costs are rising across the board and theyre just struggling. Darren, thank you very much for do appreciate it. Ive been do appreciate it. Ive