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BBCNEWS World Business Report July 7, 2024



we start here in the uk, where the bank of england has raised the cost of borrowing to its highest level in 13 years. the quarter of a percentage point rise, to 1.25%, was less than some were expecting. but financial markets are now betting uk interest rates will have to rise a lot further from here, to get control over soaring inflation. the worry is, too steep a rise in borrowing costs could tip the economy into recession. and the warning signs are already there. our economics editor faisal islam reports. on faisal islam reports. the outskirts of doncaster, a on the outskirts of doncaster, a successful business, the crown hotel, grappling with energy, food prices and wages going up at the same time that household income is being squeezed and now a relentless run of interest rate rises to hit some buyers on variable rate within hours. hit some buyers on variable rate within hours. with got a mortgage rate within hours. with got a mortgage and rate within hours. wi ....

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BBCNEWS World Business Report June 4, 2024 04:32:00

Going up at the same time that household income is being squeezed and now a relentless run of interest rate rises to hit some buyers on variable rate within hours. hit some buyers on variable rate within hours. with got a mortgage rate within hours. with got a mortgage and rate within hours. with got a mortgage and the rate within hours. with got a mortgage and the very - rate within hours. with got a mortgage and the very day l rate within hours. with got a l mortgage and the very day the bank of england put the rates up bank of england put the rates up we get an e mail it s going up. ifelt to up we get an e mail it s going up. i felt to see how hitting a business with higher rates of interest which get passed on, itjust interest which get passed on, it just adds interest which get passed on, itjust adds on to all the other costs. it is a perfect storm, it is carnage. it other costs. it is a perfect storm, it is carnage.- storm, it is carnage. it is almost storm, it is carnag ....

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BBCNEWS World Business Report June 4, 2024 04:33:00

Costs of credit cards, loans and mortgages was lifted again to a 13 year high with 1.25%. but as you can see from the charts, even at these post financial crisis highs, it is still a rather low rate of interest by historic standards and this is why rates are going up and this is why rates are going up because inflation already at a a0 year high of 9% isn tjust heading for double digits, another bank thinks it could hit 11% in autumn as energy prices and sterlings fall push inflation higher. inflation higher. where it is difficult as inflation higher. where it is difficult as the inflation higher. where it is difficult as the balance - difficult as the balance between bringing inflation down and tipping the economy into recession stop ba think it is quite possible that we will see a period of contracting output. so if targeting the rise of inflation, the governor andrew bailey has had to write a letter of explanation to the chancellor. it is notjust on this road in durham that peo ....

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