quite simply they are doing this because of inflation and the rate of price increases and the international comparisons are clear, although inflation is falling, in the uk it is not falling by as much or down to as low a level as it is elsewhere in europe in the us, and the us, and the bank has been talking up food prices and the amount we pay for services and the speed that wholesale, lower wholesale prices are being passed through the supply chain to us. the bank talked about crystallising risks, essentially the fear that when it comes to private sector wage growth, rings might be becoming embedded so they argued they needed to continue acting despite the impact it will have on households and businesses and we know the impact it will have on uk households and mortgage holders and also those ran singh. also a warning from the bank also those renting. they said the rates will be high for a while, they are expecting inflation to meet the target of the prime minister, to
higher savings for some. in the last half an hour, we ve had this reaction to the rate rise from the chancellor, jeremy hunt. well, of course any rise in interest rates is a worry for families with mortgages, for businesses with loans. but underneath that decision is a forecast that says that this time next year, inflation will be 2.8% and we will have avoided recession. what the bank of england governor is saying is that we have a plan that is bringing down inflation lay solidly, robustly and consistently. so the plan is working but what we have to do as a government is make sure we stick to that plan and don t veer around like a shopping trolley. we stick to that plan so that families and businesses can start to feel the benefits of that plan actually working. so, jeremy hunt says the government is sticking to its plan. but this was the reaction from labour s shadow chancellor, rachel reeves. the government need to take responsibility for the fact that inflation in the uk
a month in repayments. somehow, we re supposed to spend less and find £750 extra a month to pay for that. so, you know, for many families, it is a terrifying situation. you know, if you have young families like ourselves who have been swayed into the housing market by government, who s advertised help to buy as an affordable scheme, right? when things become unaffordable, you can t simply turn around and say, that s your problem. a rise of 0.25 percentage points would take the bank of england s base rate to 5.25% the highest since april 2008. for someone with an average tracker mortgage of £200,000, that would mean a rise of more than £23 a month. and for around 800,000 homeowners due to renegotiate their fixed deal in the second half of this year, it could mean an even bigger increase in their monthly repayments. whites, good afternoon. but at this estate agent in salisbury, they say there are still more people wanting houses than there are properties available. a sup
responsibility for the fact that inflation in the uk is much higher than it is in comparable countries. in the us, it is 3%. in the eurozone it is 5.3%. and yet, here in britain, inflation remains stubbornly at 7.9% because of a decade or more of mismanagement by the conservative party. let s talk to our work and money reporter peter ruddick. what does this mean for people with mortgages? it what does this mean for people with mortua . es? . , what does this mean for people with mortua . es? ., , , what does this mean for people with mortauaes? , , . mortgages? it was widely expected but unfortunately mortgages? it was widely expected but unfortunately that mortgages? it was widely expected but unfortunately that will - mortgages? it was widely expected but unfortunately that will not - but unfortunately that will not prevent the pain from hurting. let s break this down, for people on a variable or a tracker rate mortgage, which tracks the bank of england base rate, they
from hairdressers and businesses, from a cafe, if you look around your workplace, do you think things are not moving in the right direction? do you worry about what it might mean for yourjob? what about your mortgage? we are getting lots of listeners and viewers getting in contact about mortgages and where they go from this. rent as well, landlord saying what are we meant to do? we are seeing the rises in mortgage rates that we are having to face. maybe you are hoping for a better return on your savings. let s hear from some savers. and, better return on your savings. let s hearfrom some savers. and, more broadly, if you look on a macro level, are the tactics of the bank working for you the idea of higher interest rates taming inflation is there an alternative to that pass? this issue matters to every one of us, all of us, one way or another. it s a rate rise good for you? despite saying goodbye to our viewers on the bbc news channel? we are still with our listeners and just