hello, it s time now for the top business stories. we start here in the uk where the cost of borrowing is on the rise again the bank of england is widely expected to raise interest rates by at least 0.25% as it battles to bring inflation under control. it would be the 14th rate rise in a row, piling yet more pressure on many households and businesses. the bank s main interest rate is already at 5% the highest in around 15 years. inflation is beginning to ease, but consumer prices are still rising at almost 8% a year that s four times the bank s target. so it has a tricky balancing act to perform reining in inflation without strangling the economy as our economics editor faisal islam explains. there s been a couple of things that have gone in the bank s
a month in repayments. somehow, we re supposed to spend less and find £750 extra a month to pay for that. so, you know, for many families, it is a terrifying situation. you know, if you have young families like ourselves who have been swayed into the housing market by government, who s advertised help to buy as an affordable scheme, right? when things become unaffordable, you can t simply turn around and say, that s your problem. a rise of 0.25 percentage points would take the bank of england s base rate to 5.25% the highest since april 2008. for someone with an average tracker mortgage of £200,000, that would mean a rise of more than £23 a month. and for around 800,000 homeowners due to renegotiate their fixed deal in the second half of this year, it could mean an even bigger increase in their monthly repayments.
you expecting? i think there will be a rate rise and everyone you expecting? i think there will be a rate rise and everyone is - a rate rise and everyone is expecting 0.25% from the bank today. the challenge it has is that it s looking at what inflation has already done and we know interest rate rises take quite a while to filter through. rate rises take quite a while to filterthrough. is rate rises take quite a while to filter through. is any danger here that rates go too high and therefore strangle the economic recovery? there is always a risk when putting interest rates up, it s a really hard job to do. to know that when you re putting your foot on the accelerator that is going to do the right thing because there are lots of lags in how long it takes. in general, you get the sense of the bank of england and the message, they are more concerned about doing nothing, they feel that they can dial back on that a little bit more than letting inflation continue to persist. obviously, the
-ets time there is a glimmer of hope, it gets pulled time there is a glimmer of hope, it gets pulled a little bit further away gets pulled a little bit further away. 0.25% has been mentioned, that 025% away. 0.25% has been mentioned, that 025% is away. 0.25% has been mentioned, that 025% is only away. 0.25% has been mentioned, that 0.25% is only in number when you apply 0.25% is only in number when you apply it 0.25% is only in number when you apply it to 0.25% is only in number when you apply it to a 0.25% is only in number when you apply it to a number that someone has when apply it to a number that someone has when the old money, it could be hundreds has when the old money, it could be hundreds of has when the old money, it could be hundreds of pounds a month. people do not hundreds of pounds a month. people do not have hundreds of pounds a month. people do not have the scope to find out. | do not have the scope to find out. i know do not have the scope to find o
for the headlines. as we have been hearing on the show, the bank of england is expecting to hear its dutchman raised its main interest rate later for the 14th time in a row. it s hoping to tackle high inflation which is currently four times higher than the official target. most analysts predict the rate will go up by a 0.25%. higher interest rates have been cited as one reason for the drop in high street footfall. the analysis firm, springboard, says this is the first time it s recorded fewer high street shoppers betweenjune and july, since it started monitoring shopping habits in 2009. official figures show that 20% of people arrested for terror related offences last year were under 18. that s up from 4% in 2020.