you saw this bank of england decision, -- what did you see in this bank of england decision? jeremy: i thought the tank of england would maintain that incremental standard. consider going into a historical president in a month where there were not updated macro forecasts, i think, was always somewhat ambitious. clearly the journal -- the external factors, the bank of england could be more forceful, but it is a graduated response. i've been listening to your debate regarding the impact of inflation versus the growth dynamics, and i think the bank of england are mindful that the growth story is going to prove to be increasingly challenging, and i think that is how we view it from cibc. that will certainly temper the reaction compared to what the market is anticipating. tom: jeremy, tell us the political calculus between the chancellor of the exchequer and the prime minister, with the governor of the bank of england as compared to president biden, secretary ellen, and their pressures on jerome powell. jeremy: clearly i think from the bank of england perspective they cannot influ

the response by the bank of england has been to raise the cost of borrowing. rates have recently been increased from 1% to 1.25%, the fifth consecutive rise, pushing them to the highest level in 13 years. our business correspondent, emma simpson, has been speaking to the chairman of the supermarket chain asda, lord stuart rose — he told her that his customers have been cutting back on their shopping. if you haven't got the money, i cannot eat. iii if you haven't got the money, i cannot eat-— cannot eat. if they are cheap we buy them _ cannot eat. if they are cheap we buy them and _ cannot eat. if they are cheap we buy them and freeze - cannot eat. if they are cheap l we buy them and freeze them. definitely shopping around and looking — definitely shopping around and looking at_ definitely shopping around and looking at what _ definitely shopping around and looking at what is _ definitely shopping around and looking at what is cheaper- definitely shopping around and looking at what is cheaper andl looking at what is cheaper and whero — looking at what i

joining me now is lizzie burden outside the bank of england. how is the boe going to strike this balancing act and what is the overlay from the fed? >> let me spell out what this is. on the hawkish side you have inflation running at 9% in the u.k. following up wage growth. in the bank of england, the latest inflation shows lost faith in the bank to control inflation. chancellor rishi sunak has announced extra support which he admits is going to be inflationary. for the doves, the economy unexpectedly contracted in april. consumer confidence is low. you are starting to see straws in the wind in the housing market falling and the same could be said of the jobs ticket yesterday -- jobs data yesterday in the labor market. economists reckon you are going to see a cautious hike of 25 basis which today which would take the key rate to 1.25%, the highest in 13 years. tom: the rate we are seeing for central banks, the ecb playing catch-up of course, the fed ahead of the pack. how does that all impact the decision-making from policymakers at the bank of

tk, the bank of england up next. tom: it is every central bank for themselves, and you wonder where the bank of japan slips into this. the news right now is so extraordinary that we need a stagger from the hawkish, bank by bank by bank. how did they deal with the oecd 2.8% global growth next year? is it a forced recession? is it a forced global slowdown? jonathan: what did scott minerd say yesterday? we saw it there in the opening part of this program, fantasyland again. he is not believing those forecasts and believe they could be worse. tom: mr. minerd has an opinion, but more importantly we need to redux what bill said yesterday. the answer is the president of the new york fed, the esteemed william dudley, was scathing how this is a rose-colored view. jonathan: rates are going up. lisa, the market is doing the talking this morning. equities down, yields higher. lisa: the ecb is going to have to act, and that is the clear message we got. also the swiss national bank raised rates for the first time in 15 years. and

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 carnage. it is almost like _ storm, it is carnage. it is almost like they - storm, it is carnage. it is almost like they are - storm, it is carnage. it is. almost like they are trying storm, it is carnage. it is - almost like they are trying to temper a consumer boom but you see much sign of that?— see much sign of that? there is no consumer— see much sign of that? there is no consumer boom _ see much sign of that? there is no consumer boom to - see much sign of that? there is no consumer boom to temper. | no consumer boom to temper. outside the bank of

the bank of england has never done more than 25. it was unprecedented for them to do five hikes in a row as they did today and from there, you know, the bank of england, don't forget, they started this treatment for any of their peers . the real reason is the recession risk. you had the chief economist there emphasizing the two-sided risk in the u.k. with a recession in all but name. consumer confidence is low. the housing market even is starting to show signs of turning with that unexpected contraction in gdp in april. yes the bank of england increased their forecast to 11% today. they could say what more do they need to get tough with a cost-of-living crisis like this but clearly they have a lot to review, saying they won't be getting any growth in the u.k. next year and it is this recession risk that brings us only 25 today. kriti: what's coming up for the next meeting? lizzy: by the end of the year they are looking at 3% hikes with markets pricing a 50% chance of 75 by september. it's a little confusing but our economics in-hous

of .6% as we look ahead to the bank of england, expected to hike by 25 basis points. will the hawks make their case given what we see from the ecb and the fed? the cac 40 with losses of .5%, the italian ftse down .5% after we saw strength yesterday on the back of that emergency meeting by the ecb outlining plans for talks to deal with risks for fragmentation. spanish ibex down .1%. there was a lot of money moves into the treasury curve in the u.s. yesterday. some of that has come up today. the u.s. two year 3.27, update basis points. the s&p with losses of close to 1%. they ended up one and a half percent yesterday. nasdaq ended up more than 2%. it looks like there will be losses in store for u.s. markets according to these futures. the italian 10 year remains in focus because we know how central it is to the thinking of the ecb given the emergency meeting yesterday. there was some relief in italian bond markets on the news that they are pulling together a plan to deal with kit jucke from suction telling us that he sees further downside. francine: actually i speak to

really having to focus— the bank of england is really having to focus at— the bank of england is really having to focus at the moment on trying to stop this _ to focus at the moment on trying to stop this spiralling inflation. i apologise for my cynicism, but the moment— apologise for my cynicism, but the moment borisjohnson so he can see the end _ moment borisjohnson so he can see the end of— moment borisjohnson so he can see the end of inflation, i fear it will 'u5t the end of inflation, i fear it will just go— the end of inflation, i fear it will just go through the roof. annabel i5 just go through the roof. annabel is absolutely— just go through the roof. annabel is absolutely right, when energy prices io absolutely right, when energy prices go up _ absolutely right, when energy prices go up again in october, it will inevitably— go up again in october, it will inevitably lead to another increase inevitably lead to another increase in inflation. i am really concerned at the _ in inflation. i am really concerned at the moment about the state of this country. we are already d

andy verity at the bank of england, _ is what they hope. andy verity at the bank of england, thank- is what they hope. andy verity at the bank of england, thank you. | new figures show the health service in england is still under intense pressure as the country recovers from the pandemic. the number of people waiting for a routine operation climbed to nearly 6.5 million in may — that's one in every nine people in england and the highest since records began in 2007. but the nhs says there are signs of progress, with a fall in the number of people waiting more than two years. in a&e, 73% of people were seen within four hours. that is up slightly on last month but below the 95% target. ambulances in england took an average of a0 minutes last month to respond to emergency calls such as strokes or heart attacks. that's better than the previous month, but still more than twice the target of 18 minutes. our health correspondentjim reed has been speaking to the family of one man who died in march this year after waiting five hours for an ambulanc

., how the bank of england may be pushing back on it. another group pushing back on it is, well, public servants stop -- public service companies and their workers. brought to a near halt today. 40,000 real workers walking off the job -- rail workers walking off the jobless of the largest strike in more than three decades. in some ways i am delighted i am here in doha and missing it. let's talk a little bit about why this is happening. why rail workers are going on strike. >> well, so the walk up again at midnight after negotiations between the train companies in the labor union failed. this all started with the dispute between union bosses and the government over 4 million budget cuts from the national railways and for london and pay raises with the cost crisis in the u.k. but the government says, look, this 4 million budget cuts we have to do it because of lower revenue from transit fare after the pandemic, less people using the trains to get to work because they're working from home. alix: it looks like trains are moving. how bad are

the bank of england raises rates to 1.25% — it's the fifth successive increase since december. it's the latest attempt to tackle the impact of rising energy bills and other prices, as inflation is now heading for 11% later this year. and given the continued rise in the cost of living, some experts say interest rates should have gone even higher. also tonight... as the conflict in ukraine claims more lives, russia tells the bbc that there's no war going on and that britain is behaving unwisely. translation: both boris johnson and liz truss say openly _ that we should defeat russia, we should force russia to its knees. go on then, do it. a new report has described a systemic culture of abuse inside british gymnastics. by using our voices, we now know that there is a culture of abuse and these are children being abused. and in central africa the race to stop the plunder of rich peatlands and the release of damaging carbon dioxide. and coming up on the bbc news channel, rory mcilroy says he's in a good spot mentally, as he starts the us open with a sharp three—under—par round.

all eyes now on the bank of england. it's expected to raise interest rates too. but will it be enough to stop the pounds downward spiral? the return of the eurozone debt crisis. europe's central bank scrambles to reassure bond markets as borrowing costs surge for italy and greece plus — the crypto crash deepens. could it spell disaster for el salvador�*s multi—million dollar gamble on bitcoin? we start in the us — where the federal reserve has announced the biggest rise in borrowing costs in 28 years. the fed raised its key interest rate by three quarters of a percent — and signalled more big increases are on the cards. as our correspondent michelle fleury reports, from washington, it's battling to control the worst inflation in four decades. intensifying its five figure inflation which is currently at a a0 year high reserve raised its key interest rate by three quarters of a percentage point to a range of 1.5 to one and three quarters of a percent, move that will push up borrowing costs for and company. us interest rates haven't been hiked by this much

yes, and the bank of england with its fifth | the bank of england with its fifth consecutive increase in interest rates as it effectively tries to put the lid on inflation that we are seeing across the world but especially in the uk, fuelling that cost—of—living crisis, rising to 11% compared to 10% previously. just trying to take some heat out of the economy — but by doing so, they will aggravate the cost—of—living crisis because that means mortgage payments will go up. but by not trying to tip the country into a recession but bring that inflation down to 2.5% target — it's a very difficultjob for the governor. d0 target - it's a very difficult “ob for the governor.�* for the governor. do you think --eole for the governor. do you think peeple are — for the governor. do you think people are more _ for the governor. do you think people are more exercised - for the governor. do you think people are more exercised by| for the governor. do you think. people are more exercised by the trend in rate rises or inflation? i think probably we are a nation of two parts - — thi

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the bank of england _ diplomat inflation egg. the bank of england might be next week, it has another— england might be next week, it has another decision policy coming up that we _ another decision policy coming up that we could expect perhaps to see rates go _ that we could expect perhaps to see rates go even higher, which will place _ rates go even higher, which will place household under even more pressure — place household under even more ressure. ., y place household under even more ressure. ., , i. place household under even more ressure. ., , , ., ., pressure. polly, you get the long straw or the _ pressure. polly, you get the long straw or the short _ pressure. polly, you get the long straw or the short straw - pressure. polly, you get the long i straw or the short straw depending on how you look at it the daily star tomorrow morning, the wedding center. �* , p, tomorrow morning, the wedding center. �*, . ., tomorrow morning, the wedding center. �*, . . ., tomorrow morning, the wedding center. �*, . . . �*,

so i think the, the bank of england has been a bit too incremental. they have to do it a lot more than it really has to be to the point where the interest rates that they said are above the inflation rate. right now they're below the inflation rate. inflation came in at 9 percent. we expected to go to 10 percent and as long as rates are lower, that is what we call negative real rates, where the, the, the actual inflation adjusted rates are still below 0. and that's the case now. so in many ways it's too little, too late. they have to do more, the cost of living crisis is, is happening all over. whenever europe, elsewhere in the world. how much worse do you think it's going to get in the u. k. and especially with attempts to get less dependent on russian energy. all they're going to be able to deal with it. yes, you know, in many ways, you case in a better position than the rest of europe because they were only buying 3 percent of their natural gas. for example, from the russians. it was very easy for the u. k. to stop buying any energy product product

problems mount for the bank of england. tom, things are not looking great over on the markets because it is like a game of how do you price this? tom: whether it is crypto or fixed income, we have a number of officials out all pointing to their concerns about the pressures on their currencies, as you see this week. the inflation print on friday about the estimations. across the yield curve, the steepening you saw in terms of the front -- the yield curve was flattening. it was taking a sharp rise higher in yields. the u.s. 10 year, 31, the highest level in terms of that yield since 2018. the benchmark in europe is lower by 1.4% after a weekly loss for european stocks last week. the dax is lower by 200 points, the ftse 100 lower by 100 points with gdp coming in contracting for the month of april. the boe is later this week, so pressure on the bank of england and the government as they push ahead with controversial legislation on that northern ireland protocol. let's see how things are breaking out across the sectors. it is ri

a year, rose to 9 percent with the governor of the bank of england warning of apocalyptic food price hikes. further back the supply chain, the middle men, a trying their best to absorb the rising costs. this is london's biggest wholesale food market where the industry's experiencing a perfect storm of problems from the pandemic to breaks it. and more recently, the war in ukraine, the crisis go on in ukraine. ah, with the floods going on in spain, diverse marketing costs, fuel costs breaks as an alps as well, in terms of all the, the extra paper it has to be done. who knows what's around the corner? if the war continues, is gonna get worse, the winter may a worse look, look, go, we're looking at an hour. yeah. the, the cost of heating, the cost of electricity, is all going up and up and up. russia and ukraine, some of the world's largest producers of cooking oils fertilizes, and grains uses everything from bread to animal feed for the conflict means goods are stuck in ports or rotting in fields produces the sellers are used to dealing with unpredictable situations from low yields, to

francine: bank of england. 25 basis points. being priced in the market as aggressive moves. >> yesterday's decision is being seen as dovish but the guidance is hawkish. only went for 25 basis points. the context is the bank has never gone for 50 basis points before. this is the third straight hike. banks are the first out of the gate to tighten. really the reason why six of the nine member committee didn't want to do more is they are concerned about the recession in the u.k. the economy contracting. consumer confidence is low. the housing market is slowing. really they are not as optimistic about the resilience of demand. three members of the committee went for 50 days of points. francine: thanks. alex is head of blackrock and he joins us now. doesn't have that much skin in the game in termor inflation. is the bank of england, have they relinquished control? >> i think the bank is in a slightly different position. not just high inflation driven by food and energy prices. why is that? symptomatic of something deeper. imbalance o

rishaad: we got a couple more big -- the bank of england and then we have the bank of japan. bank of england is clear on what they are seeing in terms of inflation. the bank of japan, they are between a rock and a hard place. >> boy are they ever. there key rate up by a quarter. point -- a quarter percent and 1%. it's moving very slowly since they started in 2021. inflation is so high, labor markets are still tight. we think the second half it will slow down but for now you can bet on a rate hike. boj, that is tougher, because the governor keeps staying over and over again, they need to keep the stimulus. they need to maintain yield curve control. cap that 10 year jgb at 0.25%. they're having to buy more bonds but that is ok they will keep doing it. they have to keep a post-pandemic recovering, even as the yen weekends. he has stated about a rapid decline in the yen but so far, giving no signs at all that he is ready to make the shift. it would be a huge shift in policy. they could widen out the yield for control range but in terms of fundamentally changing what they're doing

the bank of england has said 8096 -- _ external? the bank of england has said 8096... it's _ external? the bank of england has said 8096... it's the _ external? the bank of england has said 8096... it's the price - external? the bank of england has said 8096... it's the price of - said 80%... it�*s the price of energy, stupid, and the said 80%... it�*s the price of energy, stupid, and the price said 80%... it�*s the price of energy, stupid, and the price of raw materials, but they are saying not all of it can be attributed to global forces, all of it can be attributed to globalforces, some of all of it can be attributed to global forces, some of it may be domestic and they are pointing to the tight labour market and how wage pressures are increasing, employers are having to pay people more in order to attract the staff because of the recruitment crisis they have got out there, and it�*s those pressures that the bank of england wants to head off. it is still predicting that although inflation will peak at 11% this year it will subside and get down to its 2% targ

of this _ of the bank of england said 80% of the factors of this inflation - of the bank of england said 80% of the factors of this inflation is - the factors of this inflation is external. _ the factors of this inflation is external, with _ the factors of this inflation is external, with absolutely - the factors of this inflation is external, with absolutely no| external, with absolutely no control _ external, with absolutely no control so _ external, with absolutely no control. so he _ external, with absolutely no control. so he has _ external, with absolutely no control. so he has control. external, with absolutely noj control. so he has control of external, with absolutely no - control. so he has control of 20%. so he _ control. so he has control of 20%. so he could — control. so he has control of 20%. so he could do— control. so he has control of 20%. so he could do on this _ control. so he has control of 20%. so he could do on this 20%- so he could do on this 20% something _ so he could do on this 20% something. the _ so he could do on this 20% something. the problem . so

we look ahead to the bank of england. we have the fed first, then the bank of england, at a time when we could be hiking in a recessionary environment in the u.k. banks and energy are up. telecoms also in the green. a number of sectors in the red including auto parts, real estate as well. in terms of oil, the opec report out later today, the iea is out with that wednesday. francine: the eu's chief brexit negotiator has warned that the u.k. will not renegotiate the northern ireland protocol. the bloc is weighing legal options. our european correspondent maria tadeo is in brussels. >> the u.k.'s proposal is to split the flow of goods between britain and northern ireland off of goods continuing into the eu the u.k. government says that is necessary because the democratic unionist party in northern ireland is refusing to join the power-sharing executive there until about northern ireland particles change. the irony is that the dup is still refusing to permit the power-sharing executive. the u.k. says this is legal because of

the bank of england has put up interest rates to 1.25% as it forecast that inflation would now exceed 11% in october. the increase of a quarter of one percentage point is the fifth rate rise since december. our economics editor faisal islam reports. 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, that hits some borrowers such as craig, on variable rates, within hours. we've got a mortgage, you know, on the hotel and the very day the bank of england have put the rates up, we get an e—mail — going up. i fail to see how hitting a business with higher rates of interest, which get passed on — itjust adds on to all the other costs. it's just a perfect storm. it's carnage. it's almost like they're trying to temper a consumer boom, but do you see much sign of a consumer boom? there's no consumer boom to temper. outside the bank of england, things seem bright, but inside, the bank'sjob is somewhat less sunn

talk to me about what this means for the bank of england. lizzie: you've got something for both the doves and the hawks. on one hand, this is a cost-of-living pain be could wage growth was higher-than-expected, to slowly put the rise to the workers, and the suspending power, the most and 21 years. on the other hand, this data shows that the labor market, as you say, is easing. the employment rate raised unexpectedly, not driven by the drop in economic activity. you will still get a 25 basis point hike from the third day to 1.25%. there has been a question of whether it would be 25 or 50 basis points for the gdp figures yesterday which showed that unexpected contraction in april probably means we are going to 25. alix: what is the expectation once they get to 25? we are talking about 100 now, that is the rumor circulating in the u.s. once they get to 25, then what? yes, they started earlier, but they are dealing in a much tougher economic environment in some ways. >> i think that is part of the reason why the pound is struggling so much today

of england forecast. it makes the entire country poorer and is why unions representing nurses, council workers and train drivers are putting in demands for wage rises that sound high. economists are asking, why the inflation problem here in the uk appears more stubborn. we problem here in the uk appears more stubborn.— more stubborn. we think uk inflation may _ more stubborn. we think uk inflation may pick— more stubborn. we think uk inflation may pick a - more stubborn. we think uk inflation may pick a little - inflation may pick a little higher and stay a little higher longer than we are seeing elsewhere in at the developed markets and there's a number of reasons. one is the exchange rate, the other is away our household energy prices were, and the final factor is maybe brexit which may give the tightness in the labour market and wage pressures higherfor longer. and wage pressures higher for loner. ~ , ., , longer. while there is a surge in food prices _ longer. while there is a surge in food prices

uk interest rates hit their highest level since 2009 as the bank of england hints there could be more increases ahead. the bank has raised interest rates to 1.25% as it tries to dampen down inflation. this hotelier worries it won't work. hitting the business with higher rates of interest, which get passed on, you know, itjust adds on to all the other costs. it is a perfect storm, it's carnage. inflation is now predicted to hit 11% this year. also on the programme: huge queues to get seriously ill patients into hospital — england's ambulance service had a record number of 999 calls in may. lifting the lid on the culture surrounding british gymnastics, damning report brings to light the physical, emotionaland damning report brings to light the physical, emotional and sexual abuse suffered by young athletes. the hollywood actor kevin spacey appears in court in london charged with sexual assualt. and temperatures soar in england and wales — it could hit 3a degrees tomorrow. and coming up on the bbc news channel... the new premier league fixtures are out. premier league champions manch

of england is kind of banking on that. if you have got inflation that is caused by massive supply—side problems and you've got demand that is normal, then that tactic they are try to pursue is actually to kind of brain to consumer demand, so supply and enter back and killed her. but that obviously by definition means slowing the economy and the bank of england is forecasting that unemployment is, whilst it will stay low for the immediate future until the cost of living crisis really starts to play out and kick in, it is a dissipating inflation so unemployment is going to increase quite a bit over the next three years to around 5.5%, and that's even without a recession which of course a bank of england has pointed out it is not actually predicting but lots people fear.— out it is not actually predicting but lots people fear. lydia, thank ou ve but lots people fear. lydia, thank you very much — but lots people fear. lydia, thank you very much indeed. _ but lots people fear. lydia, thank you very much indeed. thank- but

they are capable of surprises at the bank of england. but right now, preparation is going on to announce the fifth consecutive interest rate rise we have had to stop its a long time since that happened in succession of meetings, they have been raising rates in fact right now already, ten times what they were when they were 0.1% just after the times what they were when they were 0.1%just after the pandemic, the bank of england slashed them in order to trice and support the economy. at the thinking here is that inflation is at its highest in 40 years and even of the causes of that inflation are global causes which can't be much affected by rises in interest rates, the concern is that domestically, the expectations are that inflation will stay high and that could increase pressure on wages and that could in turn increase pressure on prices. so the bank of england wants to head that off. they came down in 2009 in response to an emergency. they only stayed down as an emergency but there has been such a need throughout the last ten years to su

the bank of england have _ to try to dampen this down? the bank of england have made _ to try to dampen this down? the bank of england have made it _ to try to dampen this down? the bank of england have made it clear - to try to dampen this down? the bank of england have made it clear that - of england have made it clear that there is likely to be, it seems like there is likely to be, it seems like there is likely to be further rate rises as we go through the year. although the npc were not unanimous on the rate rise they imposed last week, others on the committee wanted to raise it further. we are likely to raise it further. we are likely to see increasing rate rises. they have also made it clear, the bank of england, that their role is in the medium term to try to manage down inflation towards target and they have predicted that the economy is likely to contract significantly at the end of this year as a result of further price rises, the energy price cap rise and so on. it's likely many will look to the government to think about furthe

and a hard place for the bank of england. someone comes out with the history of crisis in england, that knows no one then sir howard davies, author of this book, "the chancellors." when did you start writing this? sir davies: i felt guilty, had to use the time i was saving. i thought it would be a good point to reflect on the history of the last 25 years, it has been exciting in the u.k.. the bank of england, scottish referendum, i asked various chancellors if they were prepared to reflect on it. they had time on their hands. in fact, they were happy to talk to me about it. what i try to do -- tried to do was tell the story of the last 25 years as seen from the treasury, which turns out to be quite a relevant thing. lisa: we were talking earlier this week how the bank of england raised rates because they were more concerned about the labor markets softening, or consumer demand than they were about the inflationary input to continue to create huge pressures on the economy. was that the right move, based on the conversations yo

the focus now is on what the bank of england will do next. so their next move, we think they're going to raise rates again come august. we think they'll raise by a quarter percentage point again, as they've been doing so far. but there is speculation that perhaps they may go even further. this retail veteran thinks policy makers were slow to act. so what's rather sad is that, the country, the government, perhaps the bank of england, didn't see inflation coming quickly. they've now recognised that. i did point out last year, and i wasn't the only one, that at the end of covid there was a train coming down the tunnel, and the train had a big flashing light on the top, and that flashing light said, inflation, inflation, inflation. and this boss doesn't want to predict where it will stop. emma simpson, bbc news, stevenage. 0ur economics editor faisal islam is here. that's part of the point, this has got some way to run. the that's part of the point, this has got some way to run.— got some way to run. the figure sounds quite — got some way to

as the bank of england lost control of i bank of england lost control of inflation? is the uk heading for a recession? t inflation? is the uk heading for a recession?— recession? i want people to be reassured _ recession? i want people to be reassured that _ recession? i want people to be reassured that we _ recession? i want people to be reassured that we have - recession? i want people to be reassured that we have all i recession? i want people to be reassured that we have all the | recession? i want people to be i reassured that we have all the tools we need in the determination to reduce inflation then bring it back down. firstly the bank of england will act forcefully to combat inflation. secondly the government will be responsible with borrowing and debts so we don't make the situation worse and drive up mortgage rates even further... our economics correspondent, andy verity, has been breaking down what inflation actually means and how it affects people differently. an economist will tell you it is not just one price increase, it is the whole of prices increa

what are we expecting this week with both the bank of england and japan of course alongside the fed? >> what i wild weekend what a dichotomy when you are facing the bank of japan's conundrum. if we take a look at the bank of england first, we heard this week they are in recession in all but name in the u.k.. pledging sentiment like the u.s. , high-end unsustainable inflation, and a housing market that is just flailing. the bank of england is looking to raise rates this week. it could be 25 basis point on the survey. but a small minority looking higher than that. that could rise based on the mood of the week. in japan we are going to get more news later today. kuroda addressing parliament after the yen hit that level this morning. there is sensitivity around the long-term deflationary atmosphere, but they do not like the inflation they are seeing right now and it is a sensitive time to be asking consumers and businesses to understand having to pay higher costs. very tricky conundrum the bank of japan is facing. dani: thank you so much, gearing us up for the fireworks that will be this

there is no escape for the bank of england. i guess they are committed to 25 basis point increases, so you are going to have many, many, many 25 basis point increase in the future. the dollar is a bit expensive on a ppp basis. manus: is that going to save the currency? we are going to have to actually just pasue there. go ahead. chris: i was just going to say that the ppp, purchasing power parity, is the standard metric for measuring valuation of currencies. of course, the u.s. dollar looks expensive. but we all know that valuation is not a good timing tool and equity markets or currencies or anything else, and so i think the dollar probably does get more expensive before we see this finish. manus: ok, let's see whether the smile is rich and whether it entered. research affiliates their -- chris brightman there over at research affiliates. thanks for joining us. dani: we have the world's bubble iest housing market flashing warning signs. we will have that story for you, next. this is bloomberg. ♪ ♪ dani: welcome back to "bl

the bank of england. why did they settle for a mere 25 basis points? >> a mere 25 basis points, even though it is the fifth time they have done it. they were the first major bank to start hiking rates coming out of the pandemic. now, they have kind of gotten behind in terms of how aggressive they feel they need or want to be. spit -- six members of the boe voted for the 25 basis point rate hike. three pushed for a 50 basis point move. andrew bailey the head of the boe said afterwards that the bank of england will, if necessarily, react forcefully to signs inflation is accelerating even further. they do expect it to accelerate. they raised their inflation forecast to 11%. inflation is already a 9%. you can see the big gap. what a move. at the same time, there are signs of recession. a small contraction in the economy and the second quarter could contract as well. the swiss national bank was one of the craziest things of all. no one was looking for any rate hike of any kind. 50 basis points, it's the first time they have done any kind of rate hike in 15

the bank of england are walkin: happening there? the bank of england are walking a — happening there? the bank of england are walking a tightrope _ happening there? the bank of england are walking a tightrope on _ happening there? the bank of england are walking a tightrope on this, - are walking a tightrope on this, they get need to get inflation under control, that is there clear mandate, i think we will see more rises in interest rates over the course of this year, probably another three more rate rises, but over all, that will be modest, it will keep the overall level of interest rates historically quite low. it is important to take some action to bring that inflation under control because we do not want a return to the 1970s where inflation got over 20%. we need to get inflation under control. at the same time, growth prospects as we know are weak for many households, it will feel like a recession that we are facing this year so the bank of england cannot go too far too fast or that growth will really be impacted. it is a tou

the bank of england tomorrow morning has— .75%. the bank of england tomorrow morning has to balance whether they are trying _ morning has to balance whether they are trying to catch inflation by increasing interest rates, or whether— increasing interest rates, or whether that increased in interest rates _ whether that increased in interest rates should be more cautious because — rates should be more cautious because that could trigger a recession — they wouldn't want to see a _ recession — they wouldn't want to see a third — recession — they wouldn't want to see a third month of no growth, it would _ see a third month of no growth, it would bring us into a recession or near recession. all eyes on that tomorrow. _ near recession. all eyes on that tomorrow, people paying for petrol and the _ tomorrow, people paying for petrol and the food and shops, and all feeds— and the food and shops, and all feeds into — and the food and shops, and all feeds into the growing sense of crisis _ feeds into the growing sense of crisis

the bank of england has raised interest rates for the fifth time in a row. the base rate is going up a quarter of a percentage point — to 1.25 per cent — its highest level in 13 years. the move is aimed at fighting high inflation amid soaring energy prices. 0ur economics correspondent, andy verity, told me the raise was widely predicted but not welcomed by many people. well, no, especially if you�*ve got a variable rate mortgage — that is a minority of households, less than 10%. but, nevertheless, some of them are locked into their mortgages because of what the government�*s done, selling portfolios of mortgages to lenders who don�*t have new loans. and those people will be suffering each time there�*s a rise in rates. so this is now the highest interest rates have been since 2009. you can even say interest rates are at ten times what they were a year ago because back then they were back down at 0.1%. really, the exceptional thing isn�*t so much what�*s happening now, it�*s what�*s happened for the last 13 years when we�*ve had emerge

the bank of england for example can't control rising fuel prices, rising food prices. the government perhaps can do a little bit more but any help needs to be extremely focused so that you just avoid that sort of blanket idea ofjust pumping more money into the economy because that is what is going to be creating a problem or worsening the problem. fiona cincotta, thank— or worsening the problem. fiona cincotta, thank you _ or worsening the problem. fiona cincotta, thank you for - or worsening the problem. fiona cincotta, thank you for your - cincotta, thank you for your time. financial content creators are seeing their popularity and fortunes soar in india. alongside putting personal finance in the spotlight for many, theirfame coincides with the huge wave of retail investors coming into the equity markets. nikhil inamdar sent us this report. they are on a big roadside billboards and tiny smartphone screens of millions. no, not movie stars, celebrities of another kind, india's grand financial influences. as mike influences. russia was a teacher before taking to makin

jonathan: the bank of england is not westminster. tom: ecb and bank of england, are they overcome by yield? jonathan: they are overcome by prices right now. it's the number one fear we have had for years at the become of the idea that in asian would start to build and start to run away and the 10 year yield would go with it. what on earth do you do? lisa: they are time -- they're trying to deal with the price rises that are unsustainable and it's become a political and economic issue. jonathan: how did we go from elon to boris to prices? tom: but we do. jonathan: because we are in different rooms and cannot get on the same page. tom: we are in the same room. jonathan: the nasdaq is down 6/10 of 1%. from new york, this is bloomberg. ritika: here's news from around the world, boris johnson is trying to draw a line that has been threatening his leadership but the mutiny against the british prime minister suggests his days may be numbered and he survived a confidence about by members of his own party but more than 40% of tory mps voted a

the bank of england warns inflation could rise to 11% this

the hike at 75 basis points, 25 and the bank of england. more to come. tom: we are not discussing stories of import that are pushed off the radar by the central bank derby. that ecb story from jenna rando out an hour ago from the single, oddest, desperate bond story i have ever seen. ecb, lagarde in search of an anti-crisis tool. jonathan: they want to somehow contain italian bond yields and increase interest rates, tightening financial conditions. it is going to be really tough. tom: you mentioned the shocks, the gas, the food, tanisha with elements of a revolution. tunisia shut down this morning. lisa: you had that fire at the export facility from the united states, the exported gas to europe which caused a spike in natural gas. all of these highlighting the real worry in yesterday's meeting with jay powell, where he was talking about chasing gas prices, chasing oil prices. even though this is not within their control, it is in the headline number. headline number creates expectations, they have to fight that. tom: even in boone england, i mean this wi

we're waiting on the bank of england. so as we know, these are central banks across the world tightening up policy. dagen: we were looking at that, the fox news poll. so 90% of families say that gas prices are a problem. we saw that. grocery prices are a close second at 88%. because this inflation, run-away inflation that the federal reserve allowed to happen, and created it and also the biden administration allowed it to happen and created it. so this is a hardship that smacks every american family in the face every single day from the time that they get up in the morning until the time that they turn in at night and it's only recently the biden administration hasn't even woke up to the fact that wages are falling, that the standard of living for americans is plummeting, while the cost of living is skyrocketing. the biden administration still is blaming vladimir putin for all of this. and don't forget that the federal reserve allowed inflation to run hotter than expected. late into last year and only really changed its s

of england? jonathan: -- just setting us up for what they are about to do later this summer. the hawks are pushing for 50 basis point moves. make think they go there. an overwhelming consensus is 45 this summer and you get back to zero quickly. lisa: people agree the ecb is far behind the curve but not as far as the federal reserve. i cannot imagine raising two 50 basis points. hard to see that. tom: -- jonathan: it has not hiked since forever. they were negative since 2014. we need to talk about washington. i am trying to reconcile what they are sitting on the international stage with what is happening at home. they are reassessing their view because of domestic pressure. perfect example is china. , secretary gina raimondo said steel and aluminum, we have decided to protect american workers. the president is looking at that. same weekend, this from the state department. the circuitry of state said china continues its genocide and oppression of predominantly muslim uighurs. that is a super uncomf

it opens up the scope of the ecb and the bank of england do more to support their currencies. when was the last time we talked about the swiss raising interest rates? all target rate in swiss franc that doesn't exist anymore the boe and 50 is possible it goes both ways. if the other central banks can be bolder and let their currency strengthen, that can help address the imbalance and cap the dollar for the time being, most investors want to stay overweight with the u.s. dollar. >> geoffrey yu at bny mellon, we appreciate it. >>> still to come on the show, jon najarian and bullish bets on commodities and stocks not linked to oil. >>> and elon musk gets set to meet his future twitter staffers we have that story when "worldwide exchange" returns after this break >> announcer: today's big number $841 billion that was the total outstanding credit card in the u.s. during the first quarter of the year according to the federal reserve bank of new york the highest amount ever recorded ♪ ♪ what do you think healthier looks like? ♪ ♪ with a little help from cvs... ...you can supp