means the bank has at this stage opted not to raise them any further. this raises lots of questions, does the bank of england think we have hit peak inflation and therefore as a result, we have hit peak interest rates? how long will it take for the rest of the economy to fair and how long will it take for that to filter through until we start to feel a bit better off? as we know, rising interest rates mean it is more expensive on your mortgage and any borrowing. saving rates have been rising but the bank of england has been raising them pretty sharply, iii times from their record low. that was after the financial crisis. up to 5.5 -- 5.25% of the was after the financial crisis. up to 5.5 —— 5.25% of the opting today to 5.5 —— 5.25% of the opting today to keep them on hold. some relief for mortgage holders right now of the big question, whether this is as high as they will go or indeed the bank will decide later on that it needs to keep raising them to keep a lid on inflation? but nonetheless, confirmation the bank of england keeping the inflation rate at 5.25% for now. ,, , ., ' for now. still the highest for 15 ears. in for now. still the highest for 15 years. in terms _ for now. still the highest for 15 years. in terms of— for now. still the highest for 15 years. in terms of the - for now. still the highest for 15 i years. in terms of the mortgages side of his, this is relevant for people coming to the end of a fixed term or a tracker mortgage, but for a lot of people, they will be a fixed terms, so no impact, but those are the people watching this closely. are the people watching this closel . , ., , ., are the people watching this closel. , ., , ., ~ ., closely. yes, of course, and we know that makes — closely. yes, of course, and we know that makes a — closely. yes, of course, and we know that makes a significant _ closely. yes, of course, and we know that makes a significant difference i that makes a significant difference in what they are paying every month for that mortgage. and rising so quickly. so significantly over such a short period of time and has come as a shock for many people. interest rates have been at emergency record lows. long. a whole generation of homeowners that have got used to the rates being so low. if you are seeing the mortgage repayments are rising by a few hundred pounds every month, it clearly puts a dent in your finances. month, it clearly puts a dent in yourfinances. we know that month, it clearly puts a dent in your finances. we know that people have been struggling overall with rising costs of living, it feels right now that everything has been going up in price. inflation currently at 6.7%. that itself is down from its peak in recent months. there are expectations that inflation will continue to fall. we will get the latest update in the middle of the month. that could suggest price rises are falling closer to 5%. welcome relief. and that could be why the bank government has decided to keep rates on hold right now. what the bank and has to do is juggle two things. inflation tells us what has already happened? interest rates affect our future behaviour, things that we will do in the future, so they have to make a judgment on what is happening with prices right now and working out how we will respond with our spending working out how we will respond with ourspending in working out how we will respond with our spending in the future. they are taking a view that if inflation is coming down, they can hold off raising the rates right now and in the future, things might start to settle down. interest rates are pretty blunt tool, because it makes it more extensive to borrowing to spend and we keep our money in our pockets. that keeps a lead rising prices. very bluntly, rising interest rates make us poorer. the keep the money in our pocket, rather than going out to spend. at the bank also has a balancing act because it was —— does not want to stifle too much demand, tipping the economy into recession. the uk economy is not officially in recession right now but growth remains pretty anaemic and there is concern that if that does not improve, the uk could find itself in a recession in what could be a general election year. this will really be closely watched in downing street and at the bank of england and all of us as you said will be keeping an eye on it because it affects the price of mortgages and loans and if you have a bit of money in the bank right now, you are getting more interest on your savings but that at the moment is coming from those record lows, welcome relief for savers, notjust great news for borrowers because interest rates remain at their highest level in 15 years. i interest rates remain at their highest level in 15 years. i think we can just _ highest level in 15 years. i think we can just show _ highest level in 15 years. i think we can just show the _ highest level in 15 years. i think we can just show the post - highest level in 15 years. i think we can just show the post on i highest level in 15 years. i think - we can just show the post on social media from the bank of england about the decision. talking about how the monetary policy committee voted by a majority to hold the rate at 5.25%. this gives us a bit of a 90 about the expectations for economic growth. gives you a bit of an idea about how they think the uk is doing. about how they think the uk is doinu. , ., , about how they think the uk is doin. _ , ., , ., ., “ about how they think the uk is doinu. , . , ., doing. yes, i am 'ust looking at some of the — doing. yes, i amjust looking at some of the other _ doing. yes, i amjust looking at some of the other details - doing. yes, i amjust looking at some of the other details that l doing. yes, i am just looking at i some of the other details that we are getting. you will get an official press conference within half an hour. and that will start to flesh out some of the comments they have been making for by was talking about the prospect of uk tipping into recession, the bank of england say they expect the gdp, the measure of all we do in the economy, and how quickly this growing, they say it will state with its previous forecast of 0.5% this year. the crucial thing, forecast of 0.5% this year. the crucialthing, going forecast of 0.5% this year. the crucial thing, going into forecast of 0.5% this year. the crucialthing, going into an election year, they say that the outlook for next year, 2024, for the half of 1% to zero. suggesting that in a general election year, the uk economy could flatline, as far as economic growth is concerned. that would be a huge concern. we know that elections are won and lost by the state of the economy and how we feel financially. whether we have economic growth, jobs, prosperity. the focus right now is that gdp for 2024, and it is only one forecast, but the bank government forecast is that economic growth will flatline, falling to 0%. some concern and we will get more detail when we get that press conference within half—an—hour. it that press conference within half-an-hour._ that press conference within half-an-hour. it could all affect when there _ half-an-hour. it could all affect when there is _ half-an-hour. it could all affect when there is a _ half-an-hour. it could all affect when there is a general- half-an-hour. it could all affect. when there is a general election. half-an-hour. it could all affect - when there is a general election. it could be anytime next year. right untiljanuary. could be anytime next year. right untiljanuary-_ could be anytime next year. right untiljanuary. yes, and this will be watched really _ untiljanuary. yes, and this will be watched really closely. _ untiljanuary. yes, and this will be watched really closely. as - untiljanuary. yes, and this will be watched really closely. as i - untiljanuary. yes, and this will be watched really closely. as i said, i watched really closely. as i said, this is what we vote on. if we have a job, this is what we vote on. if we have ajob, if this is what we vote on. if we have a job, if we're feeling like we have some money and can go on holiday, spend money on our lives and looking prosperous, we go out and vote accordingly, but if things are looking a bit bleak, and thejobs market, earnings, wages, the overall economy, is looking pretty unhealthy, thenjudging by that forecast, we have had from the bungling llun, that could be exact where we are, so there will be a lot of impetus now. —— the bank of england. the priority for rishi sunak was to have inflation. that may happen. a lot of expectation is inflation will start to come down. the bank government has to make a calculated gamble on how we will behave accordingly and whether prices will keep on rising. the bank of england and government will say a lot of this is driven by external factors. the russian invasion of ukraine pushed up energy prices. the conflict in the middle ages has the potential to push energy prices up again. that effect so much of what we buy because rising energy prices make it more expensive for businesses to operate. it makes it more expensive to transport goods around the country. it makes it more expensive to heat homes. that has a big bearing on how the economy fares and how much money we have in our pocket. they are external factors, not in the control of the government, individual businesses. but nonetheless, what we are seeing is a pretty bleak outlook from the bank of england, one that will get a bit more detail on from the bank of england shortly. but yes, that idea that growth remains on track for this year but next year, we looking pretty anaemic, downgrading its outlook 20%.— pretty anaemic, downgrading its outlook 20%. ., ~ , ., , . pretty anaemic, downgrading its outlook20%. ., ~ , . ., outlook 20%. thank you very much for now. live now to the bank of england and our economics editor faisal islam. what are you reading into this? no what are you reading into this? fix? surprise what are you reading into this? fit? surprise that the bank has kept rates on hold. after september. we obviously had those 14 rises since the end of 2021. and the bank expects more than half of the effect of those rate rises is yet to be felt across the economy. at this meeting, the bank also issues its new forecast, it does it four times a year and that is quite interesting. it has sort of downgraded its forecast for uk growth. not quite to a recession but basically saying that they will be no growth from now through next year, into 2025. that is interesting critical timing as a backdrop to a period when there will have to be a general election. no growth. but they are also trying to make... put out the message to the public that we will see literally any next couple of weeks the inflation number come down quite sharply from just under 7% to something like 4.8% for october because of the impact of lower domestic energy bills but they are trying to sort of communicate to the public, don't expect rates to fall alongside those falls in interest rates. and indeed, if you look across the next year—and—a—half, the rate at which inflation falls is slowing. it gets stuck around 3% for the next year. they are trying to communicate that interest rates around 5% will remain interest rates around 5% will remain in place for an extended period, it is the first time they have used that language quite clearly. my understanding is there has been no discussion at all offcuts to rates. they are really trying to target a perception in the public that we inflation having gone up so rapidly, interest rates going up rapidly, don't expect the reverse to be true because they are worried about very high wages in increasing in cash terms. the headline today is that the growth prospect for the next year—and—a—half, maybe a couple of years, very slow, to nonexistent growth, but a critical political time. , ., , ., , time. these are 'ust forecasts thou . h, time. these are 'ust forecasts though, aren't _ time. these are just forecasts though, aren't they? - time. these are just forecasts though, aren't they? we - time. these are just forecasts l though, aren't they? we should stress that. though, aren't they? we should stress that-— though, aren't they? we should stress that. , , ., ., , stress that. yes, they are forecasts and the bank _ stress that. yes, they are forecasts and the bank does _ stress that. yes, they are forecasts and the bank does this _ stress that. yes, they are forecasts and the bank does this every - and the bank does this every quarter. remember, the treasury, rishi sunak, the prime minister, has to come up with these targeted, these five tests, three of them are about the economy, it does look like now he will be meeting his target to have inflation, curiously, because thatis have inflation, curiously, because that is mainly the job of the bank of england, but i think this set of forecasts puts in jeopardy the of england, but i think this set of forecasts puts injeopardy the idea of growing the economy, as defined by the government itself, they promised that by the end of the year. this suggests that might be in the balance at least, so we will wait to see what happens in the final quarter of 2023 because that will be crucial in determining whether or not the economy has grown. yes, these are forecasts, projections, but i think when you are focusing something that is happening around now, the next couple of months, they tend to be more accurate, they tend to be a better guide as to what is happening than two, three years in the future. taking things back to basics, explain how raising interest rates affect inflation, just give us a simple expiration on that one. yes. simple expiration on that one. yes, so when you _ simple expiration on that one. yes, so when you raise _ simple expiration on that one. yes, so when you raise interest - simple expiration on that one. is: so when you raise interest rates and today they can them on hold, but they remain at what they describe as a restrictive rate. when you raise those rights, you increase the cost of money, you drain spending power from the economy, that can occur through various methods, through lower investment in the housing market, the impact on the housing market, the impact on the housing market, rises in the cost of mortgages, if they are mortgage holders, increasingly costs of businesses borrowing and doing business, making less investments, and that drains demand from the economy and spending power and the net result of all of that is that it can take away some of the inflationary pressures in the economy. the aim of rate decisions made in that building behind me, the bank of england, the aim is this, which is not to affect the inflation rate here and now but to affect it in a year or two are of years' time. you think raising eyebrows here is the high rate of wage rises that we are seeing in the economy and as that remains high, they will continue to keep interest rates in this sort of level.— this sort of level. thanks very much. this sort of level. thanks very much- an _ this sort of level. thanks very much. an explanation - this sort of level. thanks very much. an explanation on - this sort of level. thanks very much. an explanation on the| this sort of level. thanks very - much. an explanation on the decision by the bank of england to hold interest rates at 5.25%. and we are expecting to hear from the bank of england. we will listen into that and bring it to you as and when it happens. let's return to our ongoing coverage of storm ciaran, a major incident has been declared across parts of the south coast of england and the channel islands, as the weather system brings heavy rain and strong winds of more than 100 miles per hour to areas already underflood and red danger to life warnings. more than 300 schools have been forced to close, as well as several airports. live now to meghan owen, she's in st aubin injersey. you have moved your location. i can see the trees and all sorts of issues we have been hearing about across jersey and the state issues we have been hearing about acrossjersey and the state of issues we have been hearing about across jersey and the state of the roads, talk us through how things are injersey roads, talk us through how things are in jersey today. roads, talk us through how things are injersey today. i roads, talk us through how things are in jersey today.— are in jersey today. i 'ust want to show ou are in jersey today. i 'ust want to show you that h are in jersey today. i 'ust want to show you that one _ are in jersey today. i 'ust want to show you that one of_ are in jersey today. i just want to show you that one of the - are in jersey today. i just want to show you that one of the main i are in jersey today. i just want to - show you that one of the main routes to the west of the island, if you have a look, you can see that really large trees have just fallen into the main road, making it really, really difficult to pass. a few cars are attempting to but it is much quieter than normal. and that is because the advice very much remains to stay at home. you can also see in the background, here we have another vehicle trying to get through, just over there, you can see some of the drains which are blocked by leaves from the trees. this is a real concern, that'll start to build up in the next problem could be flooding. the worst of the storm has passed, the early hours we saw winds of up to 102 mph and they were really strong and powerful, it was a really strong and powerful, it was a really astonishing evening, to be honest. but now the focus is on the clearer band the fallout. know that dozens of islanders have been evacuated. their homes had been damaged and they are now staying in hotels around the island. we know that schools are closed, the hospitals are closed, except for emergencies, and people are being asked to stay at home. that advice very much remains but now that it is light, we can see just how much damage this storm has caused overnight. damage this storm has caused overnight-— overnight. jersey really cut off with no flights _ overnight. jersey really cut off with no flights in _ overnight. jersey really cut off with no flights in and - overnight. jersey really cut off with no flights in and out. - overnight. jersey really cut off with no flights in and out. nol overnight. jersey really cut off - with no flights in and out. no boat services going on. and in terms of the road, it is a difficult situation but i suppose for now, people are listening to those warnings and staying at home and we were talking to thejersey met office earlier and they were saying that really, it is improving, the situation is really improving, in terms of the weather. i suppose that is the positive now, that gives people a chance to clearer. yes, and i think there — people a chance to clearer. yes, and i think there was _ people a chance to clearer. yes, and i think there was a _ people a chance to clearer. yes, and i think there was a bit _ people a chance to clearer. yes, and i think there was a bit of _ i think there was a bit of forewarning before the storm, so people had a chance to prepare. there were sandbags lining the sea walls last night. but there was a lot of stockpiling. as you mentioned, it is a small island, very isolated, and quite often when we see bad weather and bad sea conditions, the boat does not get in and the freight boat has stopped partially this week. i think there was a lot of worry about supplies and being in this isolated community and being in this isolated community and not having access to food coming in, but the authorities do seem to be getting on top of things. there are emergency operations under way to make sure that the roads are cleared up. and people are as safe is possible. but that said, we have seen people's homes