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Speaker 1: To catch up with UK correspondent Gavin Gray, who joins

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Speaker 1: us outside Westminster of this evening.

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Speaker 2: Kyodo, Hi there, Jack, Yes I did, and indeed a

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Speaker 2: very busy day ahead as well.

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Speaker 1: Yeah, a lot of laws on the statues there. Very

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Speaker 1: exciting day. We'll get to that in a couple of

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Speaker 1: minutes and some of the big changes that Kastama's government

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Speaker 1: are trying to push through. But as New Zealand gets

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Speaker 1: its latest inflation data, the UK's inflation rate is making

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Speaker 1: us all feel just a little bit envious. So the

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Speaker 1: inflation rate in the UK right now unchanged at two percent,

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Speaker 1: which of course is did on target. So what is

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Speaker 1: this going to mean for interest rates?

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Speaker 2: Yeah, very big question. Lots of pressure I think now

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Speaker 2: on the Bank of England to bring those interest rates

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Speaker 2: down there at a sixteen year high of five and

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Speaker 2: a quarter percent. They were used pretty much as a

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Speaker 2: tool keeping interest rates, raising interest rates to control inflation.

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Speaker 2: The inflation, which had been double digit back down to

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Speaker 2: two percent. Staying at two percent. However, I think actually

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Speaker 2: analyst was like disappointed. They thought it was going to

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Speaker 2: drop a little further, particularly in one or two of

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Speaker 2: the service sectors and other measurements of inflation, so I

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Speaker 2: think they're slightly disappointed about that. Apparently what kept inflation

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Speaker 2: at the two percent was although most things are dropped,

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Speaker 2: believe it a not, hotel stay had increased in prices,

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Speaker 2: so anyone coming to visit might need to bear that

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Speaker 2: in mind. Tomorrow we get the employment figures and then

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Speaker 2: at the first of August that decision from the Bank

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Speaker 2: of England where many people with mortgages will be hoping

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Speaker 2: those rates are coming down.

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Speaker 1: So to talk us through that again, so the Bank

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Speaker 1: of England's going to be making your decision then. And

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Speaker 1: to be totally clear, here in New Zealand we get

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Speaker 1: quarterly inflation data, so we only get an update every

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Speaker 1: three months in the UK. Just how regularly do you

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Speaker 1: get your inflation data? Do you get your inflation data

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Speaker 1: every month? Given?

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Speaker 2: Yes, that's right, always roughly at the same sort of

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Speaker 2: time in the month, and the inflation with the employment

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Speaker 2: figures now trying to bring out on the first of

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Speaker 2: every month, and it's the Bank of England setting those

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Speaker 2: interest rates that most people look forward to. And as

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Speaker 2: I said, they're coming out at the first.

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Speaker 1: Of Augant and so Gavin, how do people generally structure

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Speaker 1: their mortgages in the UK. Here in New Zealand, I

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Speaker 1: think most people look to structure their mortgages over fixed

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Speaker 1: term periods, which means that even once the Central Bank

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Speaker 1: decides to cut or increase rate, there is a bit

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Speaker 1: of a lag until people switch from whatever fixed term

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Speaker 1: they are on now and to the fixed term under

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Speaker 1: a new interest rate. Certainly that is the case for

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Speaker 1: the majority of people's family homes, for example, how do

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Speaker 1: people in the UK generally structure their home lines?

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Speaker 2: There are so many different offers now, Jack's quite extraordinary.

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Speaker 2: When I got my first mortgage, it was very strictly

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Speaker 2: limited really to just about a dozen different things you

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Speaker 2: could go for. There are lots now. I think what's

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Speaker 2: become very popular are yes, those fixed knowing what you're

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Speaker 2: going to be paid, but at the moment, of course,

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Speaker 2: because interest rates high, you're going to be paying a

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Speaker 2: lot of money. So a lot of people coming off

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Speaker 2: the fixed going to the variable and also early payback

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Speaker 2: without penalty. That's very popular, right.

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Speaker 1: Yeah, So you talked to us about some of the

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Speaker 1: laws that this new government of Kia Starmers is prioritizing

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Speaker 1: and looking to pass. Thirty five new laws proposed, including

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Speaker 1: a crackdown on shoplifting.

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Speaker 2: Yes, that's right. So the king Speech is due to

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Speaker 2: take place in a couple of hours unveiling some thirty

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Speaker 2: five pieces of legislation and shoplifting is due to be

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Speaker 2: up there. And basically the previous government in twenty fourteen

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Speaker 2: past the law that meant low view thefts worth under

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Speaker 2: four hundred Australian dollars were subject to much less serious punishment. Indeed,

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Speaker 2: the police really weren't that interested unless it was a

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Speaker 2: larger theft than that. This government looking to overhaul that,

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Speaker 2: to completely change that with a new Crumb Bill, and

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Speaker 2: also to make life much easier for the police to

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Speaker 2: investigate and work with retailers to sort these offenses out.

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Speaker 2: It's going to prove very popular. Do you know. Shortlifting

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Speaker 2: cost retailers three point eight billion New Zealand dollars in

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Speaker 2: the last year. And of course who's paying for that. Well,

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Speaker 2: the answer is all the other responsible and paying public

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Speaker 2: who buy from that particular shop.

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Speaker 1: Yeah, yeah, exactly. And Gavin Sniffer dogs in Ecuador have

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Speaker 1: found more than six tons of cocaine hidden in a

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Speaker 1: banana shipment distant for Germany.

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Speaker 2: Can you believe it? Five thousand, six hundred and thirty

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Speaker 2: parcels jack filled with a white substance later tested positive

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Speaker 2: for cocaine. The shipment was destined, as you say, for Germany.

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Speaker 2: We're not quite short which port, but this is a

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Speaker 2: massive boost to those trying to crack down but also

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Speaker 2: I think an indication on the sheer scale of the trade.

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Speaker 2: Had the six and a quarter tons of cocaine ridged

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Speaker 2: its destination, it would have been worth bordering on getting

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Speaker 2: up to half a billion New Zealand dollars. Quite extraordinary.

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Speaker 2: Five people arrested following the discovery, and it was in

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Speaker 2: a deep water southwest of the Ecuador's largest city, a

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Speaker 2: deep water port, that these parcels were found hidden beneath

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Speaker 2: these crates of bananas that were destined for legitimate exports.

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Speaker 2: So quite a major achievement there, and plenty of people

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Speaker 2: now looking at Ecuador from Europe as a place to

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Speaker 2: perhaps concentrate those police investigative resources.

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Speaker 1: Yeah, yeah, that's very interesting. Thank you so much, Gavin,

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Speaker 1: really appreciate it. That is UK correspondent Gavin grat For

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Speaker 1: more from Hither Duplessy Alan Drive, listen live to News Talks.

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Speaker 2: It'd be from four pm weekdays, or follow the podcast

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Speaker 2: on iHeartRadio