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As raised interest rates by another half a percent, James, tell us about how significant this is.

I've been interested in rise is big, but it is not insignificant as some of the other things

are bank moving on now saying that inflation is going to peak at 13 over 13% this year.

And but in the third quarter of next year, inflation is still going to be at over 9%.

This is much higher levels of inflation than previously expected and for much longer.

I mean, that is going to have a clear implication in terms of things such as public sector pay.

It's much more difficult to defend below inflation pay increases for public sector workers

think nurses or teachers.

When it is clear that inflation is going to stay at this very elevated level for a prolonged period of time.

You're not asking people to soak up a difficult six months, but much longer than that.

And I think you also have the bank moving on saying that there will be a recession

that will start in the last quarter of this year and will last for longer than a year.

It is a remarkably grim economic backdrop.

And I think it is the principal driver of this is energy prices,

which again, the bank moving on kind of concur with the view that they are going to go higher

than people of previously thought and stay higher for longer.

And I mean, this is the point with all of these things that people thought might be to go back

to the way that you used to be used transitory are now clearly going to be around for a long time.

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