to their highest level in 14 years, attempting to drain spending powerfrom the economy, and the period of near zero interest rates now consigned to history with the bank warning that rates could remain at this level for some time. if you asked the question, yes, when i rates going to come down, my answer is, we are going to need much more solid evidence that inflation is going to come down and i mean that people can rely on it. the housing market correction may have started already? we are seeing some adjustment in the housing market. prices are not coming off their peak but we should avoid preaching crisis at this point. it is not that. at the law courts in salisbury, steve is arriving at a possession hearing.
the continuing high levels of inflation. it s good news for savers but not for those with mortgage payments. 0ur economics editor faisal islam has the details. in salisbury town centre you get the full view of the mixed picture. from a housing market starting to fall, and yet in a local cafe and gallery there is still spending power out there. a lot of our customers are probably a bit older, so we don t feel the mortgage rate, although it creates uncertainty for them and we do notice that when there is a rate rise, everyone gets a bitjittery. does it feel like we are getting green shoots? no, i don t. i feel we are in a holding pattern. it could go either way. today the bank of england said the tough medicine was beginning to work. there are interest rates which have been raised