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good morning. the governor of the bank of england has defended the decision to raise interest rates, saying there s a real risk of soaring prices becoming embedded . yesterday, the bank warned the uk will fall into recession as it raised interest rates by the largest amount in 27 years. the uk economy is forecast to shrink in the last three months of this year, as the bank predicts a recession that will last well into next year. the bank says that sharp increases in energy prices will push inflation to more than 13% a 42 year high and that the value of people s incomes is falling. one of the ways it can try to control inflation is to raise interest rates. this makes borrowing money more expensive which means we are less likely to spend bringing prices down. that s the bank s justification for raising interest rates from 1.25% to 1.75% the biggest rise since 1995. the governor of the bank of england, andrew bailey, told the today programme why raising interest rates ....
This is bbc news, with the latest headlines. the bank of england rejects accusations it was too slow to raise interest rates. the rise from 1.25% to 1.75% is the biggest increase in 27 years. the economy dominates the latest tory leadership debate as liz truss and rishi sunak clash over how to deal with the threat of a looming recession. the first in a series of hosepipe bans is due to come into force in parts of hampshire and the isle of wight. there s been a big increase in the proportion of doctors and nursesjoining the nhs in england from overseas. and in the commonwealth games, england s jack laugher and andrea spendolini sirieix each won golds the first diving titles for england. ....
The bank of england rejects accusations it was too slow to raise interest rates. the rise from 1.25% to 1.75% is the biggest increase in 27 years. the economy dominates the latest tory leadership debate as liz truss and rishi sunak clash over how to deal with the threat of a looming recession. the first in a series of hosepipe bans is due to come into force in parts of hampshire and the isle of wight, later today. there s been a big increase in the proportion of doctors and nursesjoining the nhs in england from overseas. and in the commonwealth games england s jack laugher and andrea spendolini sirieix each won golds the first diving titles for england. sport, and for a full round up, from the commonwealth games in birmingham it s mike bushall. ....