the leaders of china s ruling communist party gather for a summit in which ruler xijinping is expected to secure a historic third term in office. communities in three australian states are ordered to evacuate as torrential rain brings major flooding. and the flying scotsman the first steam engine to hit 100 miles an hour celebrates a century on the tracks. hello and welcome if you re watching in the uk or around the world. britain s chancellor, kwasi kwarteng, has cut short his visit to the us, to hold urgent talks with the prime minister, as pressure mounts on the government over its mini budget. mr kwarteng had been in washington for a meeting of global finance ministers. he d originally been expected to return back to london on saturday. speaking to the bbc yesterday before the change of plans, mr kwarteng said he believes 100% that he will still be a chancellor and liz truss will still be prime minister in a month s time. later today, the chancellor and prime
chancellor? it says i must stick with the plan. we need to stick to that plan here, and then we can start to see light at the end of the tunnel forfamilies. start to see light at the end of the tunnel for families. start to see light at the end of the tunnel for families. things up calm down a little. tunnel for families. things up calm down a little, but tunnel for families. things up calm down a little, but over tunnel for families. things up calm down a little, but over the - tunnel for families. things up calm down a little, but over the past - down a little, but over the past month or so, we have seen the government borrowing markets by cup. the united kingdom from your credit as it were, but being treated a bit differently from the other nations, concerns that the uk is inflation prone, do you accept that critique because ellis atopic correction, we have had because ellis atopic correction, we have ha: . , because ellis atopic correction, we have ha: .,, , .,, ., have had f
developments here in the uk. they have sort of, if you like, forced some of the issue by forcing up rates in and of themselves over two years in the government borrowing markets, the markets between banks. those rates have been going up, they have been forcing up mortgage rates without a decision from here at the bank, and you see when you read the minutes of this meeting that the bank is very attuned to those developments in the markets. they have noticed that the markets respond much more than they would have done ten years ago to every little move in the data. they also note that the moves in government borrowing markets have been sharper here in the uk than we have seen in the us or in the eurozone, and that is a judgment partly by the markets that inflation will be more persistent, sticky, stubborn, call it what you want, here and elsewhere. so the hope is that they have acted forcefully today, they will demonstrate commitment to bring down inflation, but they have not really stee
borrowing markets, but it is not its job to bail out the government. it is very important that central banks are independent. and by engaging in quantitative easing, it effectively bails the government out because by doing qe, bails the government out because by doing oe, it buys government debt and brings down the interest rates that the government has to pay on its debt. so it is, by doing oe, bailing out the government. in some ways, this was incredibly bold and brave by the bank of england to say no, we are stopping on friday. but it is also reasserting its political independence. it is saying categorically, we only came into the gilt markets, the government borrowing markets, because there was a short term problem. if the markets don t like what the government is doing, it is not ourjob to sort that out. so it s a bold, brave move