import cos interest rate costs along size im-nortcos , ., , , import cost because we are buying from other countries import cost because we are buying from other countries we import cost because we are buying from other countries we have - import cost because we are buying from other countries we have to i import cost because we are buyingl from other countries we have to put our prices up, and, people out there haven t got more money to spend. 50 haven t got more money to spend. so this intervention staved off market turmoil, turning into the collapse of some types of pension fund. but in terms of growth, and the roots of this crisis, they are still there. let s get more from faisal now. just to lord myners why you consider this intervention by the bank to be so significant, and secondly, to ask about the likely impact of that policy. 50 about the likely impact of that oli . ,, policy. so it is significant, because policy. so it is significant, because it policy. so it is si
they ve have seen interest rate costs surge alongside import costs, and demand hit. because we are buying from other countries, we have to put our prices up. and people out there haven t got more money to spend. so this intervention staved off market turmoil turning into the collapse of some types of pension fund. but, in terms of growth and the roots of this crisis, they re still there. and faisaljoins me now. quite a few things to discuss tonight. let me start with this intervention by the bank of england. just to explain to people why, in your view, that is so significant. well, i think your view, that is so significant. well, ithink if your view, that is so significant. well, i think if you are sat looking at some of the figures, the currency market and the borrowing numbers, you might feel a sense of relief that things seem to have stabilised. but, actually, the fact of this intervention is probably the biggest piece of information. normally we would only get an interracial like t
mean the value of the government debt decreases. for some long term loans, they were effectively halved, with severe consequences for one sector in particular. this was a dramatic, surprise intervention by the bank of england to save a trillion pound corner of the pensions industry. 0rdinarily, these funds buy up government debts because they re safe as houses, no risks. but their value fell so rapidly in two days that they had to be saved in this way. but this also helps the government at a tricky time by finding a customer, the bank of england, for the tens of billions of pounds of debt that they have to raise. so this is an emergency intervention, it is a crisis. and, whilst this will help buy some time, it doesn t solve the underlying problem, which is the government s economic credibility with the markets. so this intervention staved off market turmoil turning into the collapse of some types
so this intervention staved off market turmoil, turning into the collapse of some types of pension fund. but in terms of growth, and the roots of this crisis, they re still there. our deputy political editor vicki young said that the government is coming under increasing pressure from opposition parties but is keen to carry on with its economic programme. well, certainly you talk about turmoil on the markets. what they re trying to do in number 10 and number 11 downing street is to convey a sense of calm, very much saying they re sticking to their growth plan, no u turns, no suggestion that the chancellor is going to leave his job. and what they re doing is really still defending that mini budget on friday which unleashed all of that reaction, saying that they had to intervene on energy prices and that in itself will bring down inflation. they say you can t put taxes up, no other country is doing that. so they say they were right to do that, pointing out that there s a lot more to come
the underlying problem, which is the government s economic credibility with the markets. so this intervention staved off market turmoil turning but, in terms of growth and the roots of this crisis, they re still there. our economics editor faisal islam reporting. after meeting world leaders injapan following the funeral of prime minister shinzo abe, the us vice president kamala harris is travelling to the south korean capital seoul. once there, she s expecting to visit the demilitarised zone separating north and south korea. tensions are high on the korean peninsula at the moment, with pyongyang firing a missile in response to large scale naval exercises jointly held this week