we start here in the uk where investors are now betting the cost of borrowing will have to keep rising because inflation remains stubbornly high. that s despite a pledge by the government to bring it down, and a barrage of interest rate rises by the bank of england attempting to get it under control. just a few weeks ago, we were assuming that after 11 increases in a row, the bank would not have to raise rates much further. but on wednesday, there was a major rethink on financial markets, which are now pricing in three more rises this year, with rates hitting 5%. here s why. prices in the uk are still rising much too fast, with inflation at 10.1% in the year to march. that s a bit less than the 10.4% recorded in in february, but was still much higher than expected. economists were predicting inflation would fall into single figures. one of the biggest factors the soaring cost of food and drink. it s up over 19% in the past year. it s the fastest rise in 45 years accordi
is somewhat slower than expected recovery of china. have you seen much evidence of that impacting australia? yes. that impacting australia? yes, we have, that impacting australia? yes, we have. and that impacting australia? yes, we have, and there s - that impacting australia? yes, we have, and there s no - that impacting australia? yes we have, and there s no doubt we have, and there s no doubt we are driven by exports and reliance on china as the largest trading partner. secondly, china came out of the locks quite quickly after the end of february, and we thought they would move quite quickly, moving into this corridor. they have since slowed quite considerately and china s appetite is waning and impacting australia. governor phili - impacting australia. governor philip lowe impacting australia. governor philip lowe said impacting australia. governor philip lowe said as impacting australia. governor philip lowe said as pete, - impacting australia. governor philip lowe said as
and much, potatoes are up i9.3%, and much, potatoes are up 19.3%, pork is up 25.4% and if you are buying cheese it is up 33.6%. , you are buying cheese it is up 33.696. , ~ . , 33.696. some things like cheese are a luxury- 33.696. some things like cheese are a luxury. carriers 33.696. some things like cheese are a luxury. carriers taking - are a luxury. carriers taking home a hot are a luxury. carriers taking home a hot casserole - are a luxury. carriers taking home a hot casserole and l are a luxury. carriers taking home a hot casserole and it means the whole family will get a good feed. what increases i had in yourfinances? had in your finances? my children had in your finances? my children notice had in your finances? m children notice this, biscuits are a massive tree. i have to buy cheap shampoo, i know i m lucky to have shampoo, but you want nice here it makes you feel good it makes a difference. it s not nice opening the fridge and being empty. opening the fridge and b
staff cope with the soaring cost of living. i staff cope with the soaring cost of livina. ~ ., staff cope with the soaring cost of livina. ~ ., ., , living. i think going into this year havin: living. i think going into this year having just living. i think going into this year having just dealt living. i think going into this year having just dealt with living. i think going into this year having just dealt with covid, - living. i think going into this year having just dealt with covid, it i living. i think going into this year i having just dealt with covid, it was really quite a nervous time knowing do i dare take metre readings and that sort of thing? but i think having the support from the business and having that pay rise has just sort of lightens the load a little bit i made it a little more comfortable. bit i made it a little more comfortable. ~ , ., comfortable. with unemployment at 3. 696, comfortable. with unemployment at 3.696, wages comfortable. with unemployment
policy, you know, has ravaged the chinese economy, internally but also in terms of its place in the global sphere companies such as apple deciding to make its new iphone in india. multinationals are rethinking their strategy about china, aren t they? china, aren t they? yes, but it is only part china, aren t they? yes, but it is only part of china, aren t they? yes, but it is only part of the china, aren t they? yes, but it is only part of the picture. - is only part of the picture. another part of the picture is that there are still many foreign companies that are keen to invest in china. it is not just one way. to invest in china. it is not just one way- to invest in china. it is not just one way. there is a big concern just one way. there is a big concern though just one way. there is a big concern though about - just one way. there is a big concern though about the l just one way. there is a big - concern though about the impact on growth for china this year, their ze