Higher savings for some. In the last half an hour, weve had this reaction to the rate rise from the chancellor, jeremy hunt. Well, of course any rise in Interest Rates is a worry for families with mortgages, for businesses with loans. But underneath that decision is a forecast that says that this time next year, inflation will be 2. 8 and we will have avoided recession. What the Bank Of England governor is saying is that we have a plan that is bringing down Inflation Lay solidly, robustly and consistently. So the plan is working but what we have to do as a government is make sure we stick to that plan and dont veer around like a shopping trolley. We stick to that plan so that families and businesses can start to feel the benefits of that plan actually working. So, jeremy hunt says the government is sticking to its plan. But this was the reaction from labours shadow chancellor, rachel reeves. The government need to take responsibility for the fact that inflation in the uk is much higher
It’s not often that I find someone sounding even more concerned than I am when it comes to assessingthe state of the public finances, but I may have found just such a person last week when, as has
of england s rate increase. the cost of borrowing it now stands at 5.25%. let s talk to jumana saleheen, chief economist and head of investment strategy at vanguard. thanks so much forjoining us. let me ask you first of all, what is happening here with the bank? what is it that the bank is trying to achieve? many people are worried it s gone too far. achieve? many people are worried it s gone too far. thanks for having me. yes, it s gone too far. thanks for having me- yes. the it s gone too far. thanks for having me. yes, the bank it s gone too far. thanks for having me. yes, the bank of it s gone too far. thanks for having me. yes, the bank of england - it s gone too far. thanks for having i me. yes, the bank of england raised rates today and the reason why it has done that is because inflation in the uk is still very high. so headline inflation is close to 8% and core inflation, if you strip out the volatile elements of food and energy, isjust under 7%. the bank s target is 2%