Caution at the Bank Of England. It keeps Interest Rates on hold but the governor tells us they are � optimistic� that Borrowing Costs are � on the Path Down�. Over on Wall Street though the party is back on. Shares hit a new Record High as the fed says the economys in a good place despite Itsjumbo Rate cut billion dollar breaks Australias Economy rides a wave of interest in surfing. It is the government fully with the sport . All those puns to come a little later in the programme. We start here in the uk where the bank of England Governor Andrew Bailey has said Interest Rates are now gradually on the Path Down despite the Banks Decision to keep the cost of borrowing on hold today. The banks main rate was left at 5 after it was cut last month for the first time in more than four years. The bank ratcheted up Interest Rates to try and control inflation which hit a peak of 11. 1 back in 2022. Since then inflation has been brought down significantly its sitting just above the banks� target currently at 2. 2 . Our Economics EditorFaisal Islam was at the Bank Of England for the decision he says there are lingering worries about inflation but that rates are on the way down. I think the general impression that you get is of the Bank Of England ready to cut again this year butjust a little bit cautious right now. If you like the main Inflation Forest Fire is out but some of those inflationary embers are still there. They are a little bit worried they might catch fire again. We see it in the service sector, may be in some of the wage data, they are not entirely sure it is completely done, the after effect, if you like, of the massive inflationary shocks we have seen over the past two or three yea rs. So they are taking it slowly. Well, in the last few Hours Faisal has been speaking to bank of England Governor Andew Bailey heres what he had to say about their decision to keep rates on hold. Well, we have chosen to hold rates today, weve made a lot of progress, inflation has come down a long way. And of course we were able to cut rates in august. But ourjob is to make sure that inflation is sustainably at the 2 target. There are still some Pressures Service Inflation is still elevated. So i think we are now on a gradual Path Down that is the good news, i think Interest Rates are going to come down. Im optimistic on that front, but we do need to see some more evidence and of course we will be looking at this at every meeting. Meanwhile over in the us shares are surging with the S P 500 touching a new Record High as investors wrap their heads around that jumbo Half Percent Cut in Interest Rates from the federal reserve and later comments from chairjerome powell. Yesterday some were concerned it might be a Panic Measure in response to a sharp slowdown in the economy. Traders remember similar moves just before the Dotcom Crash and then the global financial crisis and the pandemic. In hiS Press Conference Mr Powell was keen to dispel any such negative thoughts. The us economy is in a good place and our Decision Today is designed to keep it there. More specifically the economy is growing at a solid pace. Inflation is coming down closer to our 2 objective over time and the Labour Market is still in solid shape. Our intention is really to maintain the strength that we currently see in the us economy. Ritika Markets were a bit noncomittal yesterday but a strong Reaction Today . There were 20 work out what that cut meant. Today quite the reaction. ,. , that cut meant. Today quite the reaction. , reaction. Today as you mentioned reaction. Today as you mentioned as reaction. Today as you mentioned as and reaction. Today as you mentioned as and p i reaction. Today as you l mentioned as and p 500 reaction. Today as you mentioned as and p 500 hitting a new highjust a day mentioned as and p 500 hitting a new high just a day after Thatjumbo Interest Rate cut from the fed. It is true that previous big cuts may have foreshadow graver eventually the economy, if you think of the economy, if you think of the global financial crisis and the global financial crisis and the pandemic that the Markets arent seeing it that way. Any fears of a weakening economy have been brushed aside at least for now. Powells comments added to that optimism. He said, as you heard, that the Labour Market is still solid and inflation is coming back to target. The narrative at the moment for Markets is that the fed is more aggressive and preventing it from falling behind the curve and reigniting optimism of so called soft landing. That means the fed is successfully able to slow down the economy whilst of averting a recession. We know Markets have been waiting for this Rate Cut but we know as soon as they get it they want to know when the next one is. How low could it go as far as Interest Rates in the us are concerned . Far as Interest Rates in the us are concerned . Powell did say not to meet are concerned . Powell did say not to expect it are concerned . Powell did say not to expect it to are concerned . Powell did say not to expect it to be are concerned . Powell did say not to expect it to be the are concerned . Powell did say not to expect it to be the new| not to expect it to be the new normal that it might new norm and we are not going back to a world of ultralow Interest Rates. He reiterated that they are committed to the mandate of getting inflation back to the 2 target and ensuring full employment. He doesnt know what the neutral rate, i either rate to get it back to that mandate is, but he doesnt see that era of cheap money returning and they will be going, as he said, carefully meeting by meeting. Going, as he said, carefully meeting by meeting. Good to talk to Yom Meeting by meeting. Good to talk to you. We meeting by meeting. Good to talk to you. We will meeting by meeting. Good to talk to you. We will check meeting by meeting. Good to talk to you. We will check in i talk to you. We will check in with you very soon. Joining us from new york. Joining me now is bob parker, senior adviser at icma asset management. There are so much we can talk about when we try to get a sense of what central bankers are thinking. But is it your assessment they are relieved that inflation isnt the only story in town right now . They can look at other things to stabilise the economy. I think the answer stabilise the economy. I think the answer to stabilise the economy. I think the answer to that stabilise the economy. I think the answer to that is stabilise the economy. I think the answer to that is yes. The answer to that is yes. Lets not forget that, apart from the Interest Rate cycle now turning down, i think actually across europe and the united states, and globally the only exception to that is japan, where Interest Rates need to be increased further. But apart from Interest Rates, obviously they are looking at managing liquidity in the Markets'>Money Markets through quantitative tightening. And the extent to which they manage the Balance Sheets as well. I think overall the picture for the federal reserve, and for that matter the european central bank, critically the Bank Of England and the ecb is one where inflation is reasonably low and stable and the pressure, the upward pressure on unemployment is hardly there at all. Unemployment levels really are at a record low in europe, very low in the states, and still remain reasonably low in the uk. � , remain reasonably low in the uk. 2. ,. ,. , remain reasonably low in the uk. As far as inflation is concerned, uk. As far as inflation is concerned, heading uk. As far as inflation is concerned, heading in l uk. As far as inflation is l concerned, heading in the uk. As far as inflation is concerned, heading in the right direction, there will be some relief that Price Rises are starting to ease. At the usual caveat applies was our prices are coming down. They arejust going up less quickly. It meanS People still have less money in their pocket and i wonder what that means ahead of a budget in the uk. The chancellor has to deliver something there for the economy. And then in the us that president ial election in november. What will we see in terms of Policy Response to those big events . I terms of Policy Response to those big events . Those big events . I think in the uk its those big events . I think in the uk its reasonably those big events . I think in the uk its reasonably clear that the budget in october will represent a fiscal tightening. Whether it is Tax Decreases or cuts in public expenditure. It is that uncertainty over the budget that was one factor in the Bank Of England staying on the Bank Of England staying on the sidelines and not cutting Interest Rates today. That was one of the considerations for the Bank Of England. However if we do get a fiscal tightening in the uk i think that is going to push the Bank Of England in cutting rates, potentially two times, by The End of the year. And certainly continue cutting Interest Rates as we go into early 2025. One of the issues he referred to, the american president ial election, and one major concern for investors is that we have very different economic policies being proposed by trump and by harris. And the uncertainty i think, as we get closer to the president ial election, may result in investors sitting on the sidelines and actually reducing risk. That is why, yes, it is logical that we have this Equity Market Rally today and that may well extend further. But i think as we get closer to early November Investors increasingly are going to basically take a watch and wait attitude towards equity Markets. We and wait attitude towards equity Markets. And wait attitude towards equity Markets. We will watch and wait too. Equity Markets. We will watch and wait too. It equity Markets. We will watch and wait too. It will equity Markets. We will watch and wait too. It will be equity Markets. We will watch and wait too. It will be a and wait too. It will be a fascinating few months ahead. Good to have you with us. Thank you for your insight. Now to the trade tensions between China And Europe because Chinas Commerce MinisterWang Wentao has been holding talks in Brussels Today with the Eu Trade Commissioner valdis dombrovskis. The European Union is considering tariffs or Import Taxes of more than 35 on electric vehicles made in china on top of its the standard 10 car import duty. Many are concerned that china is flooding europe with cheap evs disadvantaging European Car makers. The 27 members states of the eu are due to vote on the move next week but they are split as norway based Policy AnalystVarg Folkman explains. Germany has been the most vocal voice against this. Of course they have a large domestic Auto Manufacturing Industry of their own and they fear the chinese will retaliate against them if they vote through these tariffs. And of course the spanish have been wavering. Their Prime Minister went to china a short time and seemed to turn face on the tariffs which he had previously supported. Then you have other member countries like france who are very much for these tariffs. Now to surfing because australia is being urged to follow New Zealand and peru and give legal protection to surf areas or � breaks� to boost tourism. A new survey from the Australian National University says surfing injects around 2 Billion Us Dollars into the australian economy each Year Something governments need to start taking account of. From sydney, Phil Mercer reports. Surfing in australia has a proud history. A pioneer was the Hawaiian Legend showcased his skills here more than 100 years ago. But researchers say Australias World Class surf breaks near need more legal protection. Breaks near need more legal protection protection. Unfortunately, because of protection. Unfortunately, because of a protection. Unfortunately, because of a growing protection. Unfortunately, i because of a growing number protection. Unfortunately, because of a growing number of pressures, including climate change, coastal Erosion And Competition for coastal spaces, the elements that make those high quality waveS Possible are on many occasions in danger. Surf breaks currently forming a Blind Spot for policymakers. Peru and New Zealand have comprehensive measures to safeguard popular surfing spots. In australia the sport has great social and economic value. From beginners to saltwater veterans surfing generates about 2 Billion each yearin generates about 2 Billion each year in australia. Its coastline is arguably its greatest national treasure. The oceanis greatest national treasure. The ocean is like a magnet for both riders. , ,. , riders. The whole economy, cafe, accommodation, riders. The whole economy, cafe, accommodation, its. Riders. The whole economy, cafe, accommodation, its good. I love it. fit cafe, accommodation, its good. I love it. , , i love it. Of how the business for 30 years. I love it. Of how the business for 30 years, just i love it. Of how the business for 30 years, just looking for 30 years, just looking forward for 30 years, just looking forward. I pretty much see it to be forward. I pretty much see it to be a forward. I pretty much see it to be a slow growth. We try not to be a slow growth. We try not to grow to be a slow growth. We try not to grow too fast here like with the same to grow too fast here like with the same school because you dont the same school because you dont want to crowd out the actual dont want to crowd out the actual ocean. Dont want to crowd out the actual ocean. Australia is seen as the country actual ocean. Australia is seen as the country to actual ocean. Australia is seen as the country to serve. Actual ocean. Australia is seen as the country to serve. I actual ocean. Australia is seen as the country to serve. I just | as the country to serve. Ijust thought as the country to serve. Ijust thought i as the country to serve. 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To teach people and share the Oy To Teach People and share the joy of to teach people and share the joy of surfing to teach people and share the joy of surfing and to teach people and share the joy of surfing and its to teach people and share the joy of surfing and its nice joy of surfing and its nice not joy of surfing and its nice not to joy of surfing and its nice not to he joy of surfing and its nice not to be Working Joy of surfing and its nice not to be working in joy of surfing and its nice not to be working in an. Joy of surfing and its nice not to be working in an office. Its not not to be working in an office. Its not to not to be working in an office. Its not to he not to be working in an office. Its not to be working not to be working in an office. Its not to be working at not to be working in an office. Its not to be working at the l its not to be working at the beach its not to be working at the beach and its not to be working at the beach and getting its not to be working at the beach and getting sunshine| its not to be working at the beach and getting sunshine and being beach and getting sunshine and being in beach and getting sunshine and being in the beach and getting sunshine and being in the water. Beach and getting sunshine and being in the water. For beach and getting sunshine and being in the water. Being in the water. For those Chasina Being in the water. For those chasing the being in the water. For those chasing the perfect being in the water. For those chasing the perfect wave chasing the perfect Wave Surfing is about embracing the power of nature. For them it is a gift that should be protected. That looks nice, doesnt it . That is your business today. You are up to date was not much more on the website. See you very soon