Quite simply they are doing this because of inflation and the rate of Price Increases and the International Comparisons are clear, although inflation is falling, in the uk it is not falling by as much or down to as low a level as it is elsewhere in europe in the us, and the us, and the bank has been talking up food prices and the amount we pay for services and the speed that wholesale, lower wholesale prices are being passed through the supply chain to us. The bank talked about crystallising risks, essentially the fear that when it comes to private sector wage growth, rings might be becoming embedded so they argued they needed to continue acting despite the impact it will have on households and businesses and we know the impact it will have on uk households and Mortgage Holders and also those ran singh. Also a warning from the bank also those renting. They said the rates will be high for a while, they are expecting inflation to meet the target of the Prime Minister, to half inflation t
Targeted in place already. Banks need to make sure that if someone comes to them to say i was struck with my mortgage this month because it has gone up by a massive amount thanks to Interest Rate rises and looks set to increase again tomorrow, those banks need to tell customers, we can sort you out with a mortgage holiday, an extension to your term it or even shifting temporarily to an interest only mortgage. Those are things that banks have the power to do. And supermarkets play such an important role, we have seen 26 inflation in the last four years in the food industry, so if supermarkets can move the budget ranges they have an out of into convenience stores, that would help people. Would help people. Research also found that people would help people. Research also found that people werent would help people. Research also i found that people werent optimistic that their situation would improve. What have you learned about what the trends could be Going Forward . I join them and that
Voting machines. Bornean. Top of the hour this friday morning. So glad youre with us on ccnn this morning. What a week it has been. And so much more to come. Thats exactly right. This is going to be a very intense, very consequential months, years. Many years. Sawyer, dejected, defiant. Donald trumps mood, State Of Mind after his third arraignment in four months. Trump, for his part, proclaiming his innocence and accusing the Special Counsel of leading a political persecution. And indianas neartotal abortion ban appears to be underway. Some clinics in the state have already stopped taking appointments, forcing women to seek outofstate options. We will talk to illinois governor j. B. Pritzker. Also, the jops report, we will get an example of the economy in general after a pretty shaky week for u. S. Markets. This hour of cnn this morning starts right now. Heres where we begin this morning. Former President Trump back in new jersey after pleading not guilty to his arraignment in the past
The economy too much. To dicsuss this further im nowjoined by the Bank Of England 5 former head of international surveillance, katharine neiss. She is now the chief european economist for pgim fixed income. Good to have no surprise that Interest Rates are still rising. Do you think that this is it . ~ ,. ,. , is it . The banker very clear today that if inflation is it . The banker very clear today that if Inflation Remains is it . The banker very clear today that if Inflation Remains resilientl that if Inflation Remains resilient at higher levels, then they could see Interest Rates are going higher from here. That said, to me, the really big message coming out of the Bank Of England today was, even in the absence of further rises in Interest Rates, they really see these higher Interest Rates that we have seen more recently as he had to say for quite some time. Yes. Have seen more recently as he had to say for quite some time. Say for quite some time. Yes, and this is taming say for qui
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 its 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, its a really hard job to do. To know that when youre 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 ris