that s the message sent by the european central bank as it ploughs ahead with plans to raise rates, despite sluggish growth in the eurozone, and turmoil in the banking sector. the ecb s main interest rate was hiked by 50 basis points to 3.5% as it tries to keep a lid on rising prices. but the language from policymakers has begun to strike a new note, dropping a reference, used in previous statements, to the need to raise rates significantly going forward. agnese ortolani is a europe analyst at the economist intelligence unit. so, we have had this rate rise within the last hour. give us a sense of what this tells us. they don t seem to be overly concerned about the banking sector. yes indeed, about the banking sector. yes indeed. the about the banking sector. yes indeed, the ecb about the banking sector. 13; indeed, the ecb decided about the banking sector. yes indeed, the ecb decided to go ahead with this, because it is related to inflation the euro zone, so it is infla
let s start in the us where inflation has been falling for the 7th month in a row. the rate forjanuary stands at 6.4% down from a peak of 9.1% injune last year. but the latest report from the us labor department also showed the pace of that slowdown is starting to ease. the bbc s north america correspondent michelle fleury reports from new york. inflation has been coming down on an annual basis. that s the good news. the bad news on a monthly basis, prices for consumer goods actually rose at the start of 2023, despite an aggressive campaign by america s central bank to bring it down. the consumer price index was up 0.5% injanuary, compared to a revised 0.1% increase in december. the cost of housing was to blame for more than half of the increase. higher food and energy prices also contributed. the stronger than expected report, coupled with a tight labour market, could force america s central bank to raise interest rates more than anticipated. and that certainly spooked i
let s start here in the uk, where, in a few hours time, the chancellorjeremy hunt will unveil his first budget, where he will outline the government s big decisions on spending, and plans for raising or lowering taxes. among the measures he s expected to unveil is a significant expansion of free childcare provision. it s part of a strategy to get more people back to work, given the shortage of staff in some key sectors. the chancellor is also expected to announce a rise in the tax free limit for pension contributions, to encourage people to stay in work for longer. the latest economic figures underline the challenge facing the government, as well as the pressure on household and business budgets. here s our economics editor faisal islam. it is back to work budget, that s a promise, and it was centre on one of the biggest ever expansions of childcare for england with equivalent funding for other nations. parents of one and two year olds will get the same 30 hours of support a