From 5 to 5. 25 . And for the first time, its suggested that rates will stay higher for longer in an attempt to drive down stubborn inflation the rising cost of goods and services by reducing the amount of money we have to spend. Although todays increase means Borrowing Costs are at their highest level since 2008, it follows an era of unprecedented low rates. In previous decades, rates were much higher we can see here that in the 1980s rates got up to 18 before gradually falling. The bank today cut its forecast for economic growth, though it said the uk will avoid a recession. In a moment, well hearfrom savers, as well as families trying to cope with increasing costs, but first, heres our Chief Economics correspondent dharshini david. From cafe says customers may resist rate as higher mortgage and rent payments bite, to Estate Agents grappling with a sagging housing market, the hit from Interest Rates is clear. But for a very small minority, that impact is Life Changing. Minority, that
rate as higher mortgage and rent payments bite, to estate agents grappling with a sagging housing market, the hit from interest rates is clear. but for a very small minority, that impact is life changing. minority, that impact is life changing- minority, that impact is life chanauin. g ., changing. my home, my castle. steve s monthly changing. my home, my castle. steve s monthly mortgage - changing. my home, my castle. - steve s monthly mortgage repayments have tripled. add in a change of personal circumstances and his home is due to be repossessed. essen; is due to be repossessed. every sinale is due to be repossessed. every single day. is due to be repossessed. every single day, waiting is due to be repossessed. every single day, waiting for - is due to be repossessed. every single day, waiting for a - is due to be repossessed. every single day, waiting for a letter, | single day, waiting for a letter, waiting for the arrears to go up, waiting for the arrears to go up, waiting
eric: two senators are introducing legislation they hope will boost the sagging housing market. senators charles schumer plans, if you buy a house, you get a visa to come to our country. realtors say it would help lower foreign investors who want to buy a house in our country. we think it is a huge opportunity in the real estate business, to help the community, and to help everybody get rid of some of the distressed inventory, by getting investment coming from outside of the united states. some of these investors, don t have visas and want to put their money where they can, like, travel or they can see their investments, personally and if they have happen to get a visa, happily they can come down and invest their money here. eric: you know how much foreign investors spent last year to buy house and real estate in our country?