Slight fall in inflation yesterday. The governor of the bank said he expects that trend to continue but cautioned that hes watching to see whether further rises may be needed in the future. With all the details, heres our economics correspondent andrew verity. At this shared workspace in brixton in south london, what higher Interest Rates mean for students like paige is fewer landlords entering the Rental Market and more selling up as their Mortgage Costs jump and rents rise rapidly. After her landlord sold, shes given up finding a decent home to rent and moved back in with her parents. With the competition out there and what you get for your money in london, it just wasnt worth it. You would see a Shoe Box Room or a double mattress literally in a room with no floor space for upwards of, like, £800. Gerald, who runs the workspace, is also a landlord who said he had more than 80 applicants when he tried to let out a local flat for £1500 a month. The trouble for him was the Mortgage Payment had jumped in the past two years from around £550 a month to more than £2000. The only way to raise the rent by that much is to let it out on airbnb. It is a shame that we lose a property on the market that could be serving a local Housing Needs and now having to offer it people here on holiday. What has changed the picture for the Bank Of England is the figures this week on The Cost Of Living showing things writings must more slowly than expected, which has led the committee to decide to keep rates on hold. They are hoping that the rate rises they have already made will bring inflation back down to 2 over the next two years. But it is only now that the full impact of Interest Rate rises that began in December 2021 are starting to hit the real economy, with lenders saying house prices are now falling more sharply than they have since 2009, new residential developments like this one have seen far fewer reservations. This company had hoped to build and sell 50 homes but they will only do 20 this year. Eaten will only do 20 this year. Even thou h will only do 20 this year. Even though inquiries will only do 20 this year. Even though inquiries are will only do 20 this year. Even though inquiries are coming. Will only do 20 this year. Even though inquiries are coming in at high levels every week, reservations have been very, very slow. And impact it massively. Whilst there is some reservations on this site, those who are wanting to reserve have still got their own properties to sell and they are really struggling to sell them. In to sell and they are really struggling to sell them. In the housin struggling to sell them. In the Housing Market struggling to sell them. In the Housing Market the struggling to sell them. In the Housing Market the number i struggling to sell them. In the j Housing Market the number of struggling to sell them. In the Housing Market the number of people falling behind on Mortgage Payments is up by more than a quarter, with 800,000 borrowers coming off cheap fixed Rate Mortgage deals in the rest of this year, that is likely to get worse. From now on, the Bank Of England is likely to continue to be cautious about raising Interest Rates further. Andy verity, bbc news. 0ur Chief Economics correspondent Dharshini David joins me. People will be watching this thinking, is this the last of the rate rises are . It thinking, is this the last of the rate rises are . Rate rises are . It has been a long ourne , rate rises are . It has been a long journey. Hasnt rate rises are . It has been a long journey, hasnt it, rate rises are . It has been a long journey, hasnt it, jane . Rate rises are . It has been a long journey, hasnt it, jane . Doesnt| journey, hasnt it, jane . Doesnt seem fisticuffs or Arm Wrestling or heated words but this was a finely balanced decision, five members of that panel voting to keep rates where they were, four saying we should increase them a bit further, because the bank is still worried that wages are growing faster which they think is compatible with their inflation target, also history tells us inflation is a very difficult beast to tame. Alan is that against the fact that perhaps the bank is concerned that has got a bit too far or far concerned that has got a bit too far orfar enough, interest concerned that has got a bit too far or far enough, Interest Rates take a year or more to work their way through the system and what we have seenin through the system and what we have seen in recent days is a science of output falling, unemployment increasing faster than previously thought, and infected those who looked at the fine detail of this meeting, the Bank Of England has reduced how much it expects the economy to grow by over the summer, in fact from july to september, now thinking it has pretty much stalled, just a 0. 1 . That means that some economists are already warning outside the bank we could be looking outside the bank we could be looking out a recession. And regardless of whatever happens to Interest Rates at the Bank Of England next, dont forget that the Bank Of England governor has already warned we are not going to see a fall perhaps for some time. What does that mean . There is pain built in the system for borrowers, 1. 6 million householders and more residential landlords are due to refix their mortgages next year and they are likely to see much higher repayments than they have done at the moment, and that will total billions of pounds being sucked out of our economy so that means homeowners and renters and people up and down across the economy far still in a difficult situation. Difficult situation. Dharshini david, thank difficult situation. Dharshini david, thank you. On the sale of new petrol and diesel cars by five the Prime Minister has been defending making changes to some of his key environmental policies, including delaying the ban on the sale of new petrol and diesel cars by five years, to 2035. Rishi sunak said he wanted to achieve the governments Climate Target in an honest and transparent way that eases the burden on households and insisted he wasnt slowing efforts to combat Climate Change. 0ur Political CorrespondentDamian Grammaticas reports. When it comes to the climate crisis, rishi sunak, out in essex today, says he does not believe in corralling people interchange. What is driving his own shifting position . Is he looking to free people from gusts or is he playing politics in search of votes . Is the Prime Minister keeping the uk on track to hit its Climate Change targets or risking missing them . The targets or risking missing them . Tie Adoption Targets or risking missing them . Tue adoption of new targets or risking missing them . Tue adoption of new technologies is happening far faster than we thought, electric vehicles being another good example, so when you put all of that together, run the numbers as we have, we are confident we are on track to deliver net zero and we can do it now in a more proportionate and pragmatic way, thatis proportionate and pragmatic way, that is how we are going to bring people with us, maintain consent for it and people with us, maintain consent for itand minimise people with us, maintain consent for it and minimise cost Working Families which could spiral into the thousands and thousands of pounds, i dont think that is right. Idietitian thousands and thousands of pounds, i dont think that is right. Dont think that is right. When it comes to cars. Dont think that is right. When it comes to cars, mr dont think that is right. When it comes to cars, mr sunak dont think that is right. When it comes to cars, mr sunak has. Dont think that is right. When it comes to cars, mr sunak has pushed back by five years, to 2035, the date when any new vehicle you buy will have to be electric or hybrid, not diesel or petrol only. And in homes he has relaxed the date when anyone replacing an old boiler would have to use newer technology, and landlords would have to improve the Energy Performance of rented property. The uk has legally binding targets ahead every five years for reducing emissions. Worries about watching over those since the last one was made we have already been slipping back. We one was made we have already been slipping back slipping back. We have had a failed 0 tion for slipping back. We have had a failed option for offshore slipping back. We have had a failed option for offshore wind slipping back. We have had a failed option for offshore wind and slipping back. We have had a failed option for offshore wind and now a | option for offshore wind and now a setback from some of the key policies that the Prime Minister announced yesterday. That is going to make it harder to hit the 2030 goals. We are going to go away and do the numbers on that but the key thing is that those goals still remain, the Prime Minister recommitted to them so i would say that the Wishful Thinking here is that the Wishful Thinking here is that we have not got a Policy Package to meet the legal targets for this country which are set in law through the Climate Change act ulster and relaxing target dates could be counter productive. Ambitious dates many believed incentivised companies to invest and Increase Production and make things like new cars cheaper. The Increase Production and make things like new cars cheaper. Like new cars cheaper. The problem is if ou like new cars cheaper. The problem is if you pull like new cars cheaper. The problem is if you pull the like new cars cheaper. The problem is if you pull the rug from like new cars cheaper. The problem is if you pull the rug from under like new cars cheaper. The problem is if you pull the rug from under a l is if you pull the rug from under a peoples is if you pull the rug from under a peoples feet, i want britain to be the best peoples feet, i want britain to be the best place in the world to invest. The best place in the world to invest. To the best place in the world to invest, to start and grow a business. Invest, to start and grow a business, but when the government flip flops business, but when the government flip flops and changes its mind all the lime, flip flops and changes its mind all the time, it is very difficult for businesses to make those investments. Businesses to make those investments. , , investments. Some polls suggest su ort investments. Some polls suggest support for investments. Some polls suggest support for measures investments. Some polls suggest support for measures which investments. Some polls suggest| support for measures which come investments. Some polls suggest support for measures which come with gusts like the shift to electric cars is lower among those who might vote tory. Mr sunak will be hoping to tap into that vein. But others think action is needed on Climate Change, so it is a risky change of tack. Damian grammaticus, bbc news, westminster. 0ur chief Political CorrespondentHenry Zeffmanjoins Me now. Henry, how do you assess the mood around all of this, really, this lunchtime, not least in the Prime Ministers own party . Lunchtime, not least in the Prime Ministers own party . There was a moment yesterday ministers own party . There was a moment yesterday in ministers own party . There was a moment yesterday in the ministers own party . There was a moment yesterday in the Frantic I Moment yesterday in the frantic panic in government after the bbc revealed details of what was coming up revealed details of what was coming up when it felt like rishi sunak might have plunged the conservative party into yet another battle among itself. Now, here where we are now, almost 2a hours on from rishi sunak� s speech, i would say that mood has changed a little bit. Speaking to conservative mps i get the sense that most of them are willing to go with rishi sunak� s new direction, some of them tell me that they had actually been hearing for a little while from constituents who were worried about the gusts of transitioning to green energy. Now, one important thing to note is that i think rishi sunak has decided anyway that even if there is a bit of internal dissent in the conservative party, that is a price worth paying for a clear divide with the labour party, and this is not the labour party, and this is not the last one of those that we are going to see. Rishi sunak made clear today that there is going to be more announcements which he hopes will draw a clear sign of what he wants to take place for the country. Now, that probably means more internal dissent within the conservative party, but it certainly means more clear Dividing Lines against the labour party. Clear Dividing Lines against the labour party clear Dividing Lines against the labour pa. , . , ~ labour party. Henry zeffman, thank ou. One of ukraines staunchest allies, poland, says it will no longer supply arms to its war torn neighbour once existing contracts are met because of an argument about grain. Russia blocked many Export Routes of ukrainian grain after their invasion last year. This led to the grain flooding the market in Central Europe and the eu banning imports there in order to protect its own suppliers. Last week that import ban was lifted, but poland, along with slovakia and hungary, kept it going. Yesterday president zelensky criticised the move at the un, sparking this reaction now from the polish government. 0ur correspondent Sarah Rainsford is in warsaw for us. What is it about, and how damaging is all of this, sarah . Is all of this, sarah . Well, i think as ou is all of this, sarah . Well, i think as you were is all of this, sarah . Well, i think as you were saying is all of this, sarah . Well, i think as you were saying there, is all of this, sarah . Well, i think as you were saying there, jane, l is all of this, sarah . Well, i think i as you were saying there, jane, this is at its heart a dispute over rain, this is poland saying it is standing up this is poland saying it is standing up for its National Interests and that it wont allow cheap Ukrainian Ground to flood the markets here. But that is how it started, the question is what it has escalated to, i suppose, question is what it has escalated to, isuppose, and question is what it has escalated to, i suppose, and this is now a dispute even about arms supply and military support from poland to ukraine, which of course is absolutely critical. Poland has been absolutely critical. Poland has been a hub country for a huge amount, in fact most of the International Minute to aid that is going into ukraine, it has also been sending an awful lot of its own arms and ammunition ukraine and now we have the Prime Minister here, mateusz morawiecki, saying there will be no further transfers. That was later clarified by spokespeople here and members of his party, saying that what they meant was once current contracts for weapons have been fulfilled, there will be no more going in, but the hub for International Aid will continue to work. I think whats really important to remember in all of this is that we are right in the middle of an extremely bitterly fought Election Campaign here in poland, and the government is desperately keen to win, of course. It is very closely fought and it is looking for every single vote, first of all for the farmers, the rural constituency, which is incredibly important to this government, so the rain issue is key there, but also to right wing voters who are less keen on supporting ukraine. But the question is how far this will escalate and what it could lead to before potentially it might be resolved. Sarah rainsford, thank you. The Public Inquiry into the post Office Horizon it scandal has resumed this week and is focussing on one of the most high profile cases. The Scandal Saw Hundreds of workers accused of accounting discrepancies and pursued by the post office. Former Sub PostmasterLee Castleton was made bankrupt by the post office after a two year legal battle. Now,