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Hello and welcome to Coffee House Shots, spectators' daily politics podcast.

I'm Max Jeffrey and I'm joined by Katie Bulls and Kate Andrews.

The Bank of England has said that it will raise interest rates to 4.25%.

Today, Kate, can you give us the details?

Sure, Max. So nobody would have really wanted to be in the monetary policy committee shoes this

week. They didn't have an easy option. Either raise rates, which they have decided to do

marginally by that quarter point, as you say, and be accused potentially of increasing financial

instability in the wake of higher interest rates. We've now seen several banks collapse

regional banks in the States, Credit Suisse, or you hold interest rates at 4%.

I don't think anyone was talking about a cut, but you hold rates at 4%.

And you're accused of not tackling price spirals because this week, in addition to the interest rate

hike, we've also seen the headline rate of inflation rise on the year from 10.1% to 10.4%.

This is the first rise that we've seen since inflation peaked in October of last year.

And it is that terrible reminder that it's going to be very bumpy landing, getting back down to

something like a normal inflation rate, and nothing is guaranteed. We are seeing energy prices drop

significantly, but inflation around food is at staggering levels, restaurants, domestic services,

that's all going up. So the bank was in a tricky spot, and it decided to prioritize getting

inflation under control, which I think on balance was the right decision. All of it's tricky,

...