tories as the gentleman has the protest sign behind you. a live stream in the u.k., the head of lettuce, who will last longer this head of lettuce or liz truss. is there talk that the u.k. is going to find itself with yet another prime minister by the end of the year? there definitely is. there is talk about surviving longer than the prime minister. and four finance ministers in the same time, incredibly embarrassing and liz truss is at the mercy of the markets and her own mps. the market, a fractional reprieve, the pound was up 1.7% against the u.s. dollar. long end gilt yields, government bond yields did fall, quite significantly for one day but still above where they were when she came to office. she is very much at the mercy of her own mps.
with the bank saying it won t extend today s deadline. the most important thing to say here is that even if it all goes horribly wrong, the money in your pension will be protected. mortgages though are very vulnerable to changes in the market, with mortgage rates closely linked to gilt yields. and that is one way this could have an impact on all of us. changes in gilt prices, the interest rate on government debt going up and down might sound quite abstract. but in material terms, it means much higher mortgage costs for people as they come off fixed rate deals. and as people are paying more for their mortgages, consumer spending will suffer, pushing the economy towards a recession. it means ultimately higher borrowing costs for companies, which will affect their plans to invest or hire people or expand. and it means a higher cost of servicing its debt for the government. and what that means is, more and more of our tax revenues,
ironically, i say that because all the speculation about the budget u turn has taken the pressure off gilt yields, meaning there is more capacity for things to go up today and for pension schemes to cope. so ironically, i think the bank s gamble will have worked. let s get the thoughts of louise cooper, senior lecturer in finance at kingston university business school. you have to remember, the bank of england is supposed to be politically independent. the role of the bank of england is not to be there to bail out the government. it wanted to put interest rates up and reverse quantitative easing because we have rampant inflation. when you have rampant inflation, you should be putting interest rates up and slowing the economy. it was forced to do a u turn because of the chaos in gilts markets, in government
u turn on that. do you think there should be? i u-turn on that. do you think there should be? u-turn on that. do you think there should be? ~ , , ., should be? i think they should never have time limited should be? i think they should never have time limited it should be? i think they should never have time limited it is should be? i think they should never have time limited it is far should be? i think they should never have time limited it is far ahead - should be? i think they should never have time limited it is far ahead of i have time limited it is far ahead of the fiscal statement as they did, because there was always going to be a fortnight s window, so it was a mistake to cut it short today. i think they will get away with it. ironically, i said that because all the speculation about the budget u turn has taken the pressure off gilt yields, meaning there is more capacitive things to go up today and for pension schemes to cope. so ironically, i think the bank s gamble