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Blimey.

The Bank of England was always going to increase its Bank rate this month. But every economist had expected only a quarter percentage point increase.

There was good reason for this.

Although inflation data had been higher than expected this week, the bank had been slowing down the rate at which it was lifting borrowing costs. So too had its counterpart central banks around the world, most notably the Federal Reserve in the US and the European Central Bank.

Typically a quarter percentage point increase is considered a “normal” increase. And while some investors had begun to bet on a bigger rate increase this month, most people expected another normal increase.

Well, the bank’s monetary policy committee (MPC) has surprised them with a bigger increase.

It’s a sign, if any were needed, of just how worried it is about inflation, which looks like it is becoming dangerously sticky.

The stickier it gets, the harder inflation is to bring down, hence why the bank is taking this more radical step.

It is a form of shock therapy that it hopes will send out a clear message: when it comes to inflation-fighting, it’s not messing around.

The problem is that some will depict it as a form of panic.

The bank has been roundly criticised for failing to forecast the sharp increase in inflation in the last couple of years. It has been criticised for being too slow to respond. Now it is responding far more quickly, but some will argue that this is a problem of its own making.

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What’s keeping inflation so high?

And an increase like this will have a bearing on households. For as economic tools go, interest rates are a particularly blunt instrument.

Cutting them encourages all sorts of economic activity – some good, some bad. It incentivises people to borrow more, sometimes to excess. But it also encourages investment in important parts of the economy.

Indeed, you could make the case that the pretty pass we’re in at the moment, with so many households so sensitive to even a relatively small increase in rates – with the upshot that 6% mortgage rates actually feel a lot like 15% rates did in the early 1990s.

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Inflation: BoE ‘misread the situation’

In much the same way, raising interest rates is a little like bludgeoning the economy. It helps to reduce inflation, by making it considerably less attractive to borrow and splurge. But by the same token it also causes severe damage to many households. It creates collateral damage.

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‘Eyewatering’ hit to 1.4 million, mainly young, mortgage customers ahead, IFS warns

That is the dilemma facing the Bank of England right now. It knows that this will be grisly. It knows many blameless households who were simply following the best mainstream advice of the time will suffer a serious financial blow as mortgage rates rise.

Yet since its main task is to try to reduce inflation and get it down from its current 8.7% level to its target of 2%, it feels duty-bound to wield the bludgeon.

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Elianne Andam: Teenager who stabbed 15-year-old to death in Croydon guilty of murder

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Elianne Andam: Teenager who stabbed 15-year-old to death in Croydon guilty of murder

The teenager who stabbed 15-year-old Elianne Andam to death in a row over a teddy bear has been found guilty of murder.

Hassan Sentamu, 18, attacked Elianne with a kitchen knife in “white-hot anger at having been disrespected” after she stood up for his ex-girlfriend, the Old Bailey heard.

He had been due to return items including a teddy bear to Elianne’s friend following their break-up but instead came armed, wearing two pairs of gloves and a facemask.

Elianne collapsed outside the Whitgift Centre in central Croydon, south London, after being stabbed four times in what police described as a “frenzied” attack, which was caught on CCTV, on 27 September 2023.

Body worn footage of Hassan Sentamu being arrested following the fatal stabbing of Elianne Andam. Pic: Met Police
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Sentamu was arrested within 90 minutes. Pic: Met Police

Her friend compared Sentamu to a character from the Netflix crime drama Top Boy and said Elianne had her hand out begging him to “stop”.

He threw his gloves and mask in a bin and hid the knife in a garden but was arrested within 90 minutes after police stopped a bus near his home in New Addington.

Sentamu, who was 17 at the time, admitted manslaughter but denied murder on the basis of “loss of control” because he has autism.

There were sobs in the public as he was found guilty by a majority verdict of 10 to two, while he stood propping himself up with both arms in the dock and crying.

He was also found guilty on a charge of having a blade. Sentamu had also denied this charge – claiming he had a lawful reason for carrying it.

Grime artist Stormzy was among thousands of mourners who gathered at a candlelit vigil after Elianne – who went to the private Old Palace of John Whitgift School – was killed, and there is now a memorial to her at the scene.

Stormzy
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Stormzy among mourners. Pic: PA

‘I’ll do it again’

The month after Elianne’s death, Sentamu got into a row with a fellow inmate in youth custody and when he was accused of killing girls, said: “I’ll do it again,” the court heard.

“I’ll do it to your mum,” he said. “Do you want to end up like her, six feet under? I’ll do the same again.”

Sentamu, who came to the UK aged five with his mother and three sisters, had a history of violent and aggressive behaviour, as well as making repeated threats to take his own life.

He was given a police caution after pulling a knife out in class and telling a teacher he wanted to kill himself when he was just 12 years old.

Sentamu was expelled from one school after threatening another child with a knife and in other incidents put girls in headlocks and threatened to stab a student with a pair of scissors.

While in foster care he threatened to harm a cat or chop off its tail, the court heard.

Elianne with her friends. Pic: Met Police/PA
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Elianne with her friends. Pic: Met Police/PA

‘I can’t let this slide’

Weeks before he killed Elianne, who wanted to become a human rights lawyer, Sentamu said: “The real me is evil, dark and miserable” in a message to a friend.

The day before the attack, he had met Elianne and her friend, who had recently split up with him, at the Whitgift Centre, where the girls “teased” him and his ex-girlfriend splashed him with water.

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Attack caught on CCTV

Sentamu, who was studying sports science at Croydon College, later sent what police called a “chilling” message to a friend saying: “I can’t let this slide bro.”

He met Elianne, his ex-girlfriend and another of their friends the following day to swap belongings.

The girl handed him a plastic bag of his clothes, but he did not have her teddy bear as arranged, and Eliane snatched the bag back.

compile of screengrabs from court-released video linked to the trial of Hassan Sentamu accused of fatally stabbing 15-year-old Elianne Andam in Croydon
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Pics: Met Police

Sentamu stabbed Elianne with kitchen knife. Pic: Met Police/PA
Image:
Sentamu stabbed Elianne with a kitchen knife. Pic: Met Police/PA

A Snapchat video shows Elianne smiling and laughing before her expression turned to “abject terror,” jurors were told.

Sentamu pulled the kitchen knife from his trousers and repeatedly stabbed her, plunging the blade 12cm into her neck.

‘He exacted vengeance on a girl running away’

Prosecutor Alex Chalk KC earlier told jurors Sentamu was “angry… having brooded on the insult and he took the knife to the scene to reassert dominance”.

“He exacted vengeance on a young girl clearly running away from him and posing no threat,” he said.

Sentamu, who was diagnosed with autism in 2020, did not give evidence.

His barrister Pavlos Panayi KC said it was not disputed the killing was a “grotesque overreaction” but the “central issue” in the case was Sentamu’s autism history and symptoms.

Metropolitan Police Detective Chief Inspector Becky Woodsford said it was a “violent, aggressive and frenzied knife attack on a young girl”.

“Elianne was doing what was right, she was standing up for her friend,” she added.

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Russian drone shot down near presidential palace during Starmer’s Ukraine visit

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Russian drone shot down near presidential palace during Starmer's Ukraine visit

Sir Keir Starmer’s visit to the presidential palace in Kyiv was met with a message from Russia when a drone was blasted out of the sky above.

The prime minister was meeting President Volodymyr Zelenskyy to discuss the next steps for Ukraine, on Sir Keir’s first visit to Kyiv since his election victory last July.

The sound of anti-aircraft gunfire was audible in the palace courtyard as air sirens warned of possible drone attacks. While air sirens blaring are a daily occurrence in Ukraine, it’s rare for drones to be shot out of the sky over the presidential palace.

One drone was shot down, although eyewitnesses think there were at least two drones operating and suspect they were probably surveillance drones, as the one taken out didn’t explode on impact.

President Zelenskyy gave his Russian enemies short shrift, saying when the drone was detected: “We will say hello to them too.”

Politics latest: UK to give Ukraine new air defence system

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Starmer and Zelenskyy lay flowers at memorial

An audacious move by Moscow, Sir Keir said the drone threat was “a reminder of what Ukraine is facing every day” and that the war was brought about by “Russian aggression”.

The PM reiterated his support for Ukraine’s eventual accession to NATO, and noted the discussion at the NATO summit in Washington last year – when its allies put Ukraine on an “irreversible path” to NATO membership.

However, President Zelenskyy, perhaps with an eye on the incoming Trump administration, was more forthright in his response to the question of Western allies supporting Ukraine’s membership. He told reporters the US, Slovakia, Germany and Hungary “cannot see us in NATO”.

President Trump has recently acknowledged Moscow’s longstanding opposition to Ukraine’s ambition to join NATO, given it would mean, as the president-elect said: “Russia has somebody right on their doorstep, and I can understand their feeling about that.”

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Starmer visits burns victims

‘Nothing is off the table’

This was a news conference big on symbolism as Sir Keir vowed to stand by Ukraine for as long as it takes and put Kyiv in the strongest possible position for negotiations with Russia.

He pledged to work with Ukraine in the months ahead to ensure security guarantees for the country in any ceasefire deal, while also opening the door to possible troop deployments in training or a peacekeeping capacity, saying “nothing is off the table”.

“We must be totally clear – a just and lasting peace comes through strength,” said Sir Keir.

Keir Starmer poses for photos with staff members at a hospital in Kyiv.
Pic: PA
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Keir Starmer poses for photos with staff members at a hospital in Kyiv. Pic: PA

The PM also pledged to send 1,540 artillery barrels to Ukraine as President Zelenskyy called for more weapons, blaming Russia’s advance in the eastern part of Ukraine on the slow supply of weapons.

A new mobile defence system and a ramping up in the training of troops were also promised by Sir Keir.

President Zelenskyy also acknowledged in the news conference that much is uncertain around this conflict and what security guarantees Ukraine might get from its allies ahead of conversations with Trump.

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Hospitals ‘jampacked’ after busiest week of winter – but flu cases fall

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Hospitals 'jampacked' after busiest week of winter - but flu cases fall

The NHS says hospitals in England are “jampacked” after their busiest week of the winter so far – but flu cases have fallen slightly.

Despite another 1,300 beds being opened up, only 6% of the nearly 104,000 total were free – down from 7.2%.

Flu continues to have a huge impact – with cases 3.5 times higher than last year – however, numbers are down from their recent peak.

NHS England said 4,929 beds were occupied by flu patients on average for the week ending 12 January, a dip of 9% from the 5,408 the week before.

It comes as many hospitals, in places such as Liverpool, Birmingham and Plymouth, have recently been forced to declare critical incidents due to flu cases pushing them to the brink.

“While it is encouraging news flu cases are no longer increasing, hospitals are not out of the woods yet,” said Professor Julian Redhead, NHS national clinical director for urgent and emergency care.

“Staff are working incredibly hard in sometimes challenging surroundings, but winter viruses are much higher than usual for this time of year.

More on Nhs

“And this coupled with the cold snap and problems discharging patients means hospitals are jampacked with patients – even as more beds have been opened to manage increased demand.”

There were 650 patients in hospital with vomiting bug norovirus last week, a rise of 4% on the previous seven days and 44% on last year; while 1,112 people were hospitalised with COVID.

For all winter viruses combined, bed occupation was 5,851, down 8% on the week before but far higher than the 2,169 last year.

Around 29 million flu, RSV and COVID vaccines have been carried this season and while the national booking system has shut, eligible people can still get a free jab at pharmacies or via their GP.

Meanwhile, the latest stats also show handover times from ambulance to A&E improved in the most recent week.

The average was just over 41 minutes, compared with nearly 54 minutes in the previous seven days. However, that’s still slower than the 38 minutes recorded last year.

Read more:
How is your local NHS coping?

Many staff are now under the same pressure as they were “during the height of the pandemic”, NHS England boss Professor Sir Stephen Powis said last week.

Nurses have also revealed some patients are dying in corridors and going undiscovered for hours, according to a Royal College of Nursing report.

It said demoralised staff were looking after as many as 40 patients in a single corridor, unable to access oxygen, cardiac monitors, suction and other lifesaving equipment.

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