Rate Rise Decision Delayed After Queen's Death

The Monetary Policy Committee will meet one week later than planned

Sunniva Kolostyak 9 September, 2022 | 1:11PM
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bank of england

The Bank of England (BoE) has decided to delay its upcoming meeting on the interest rate because of the death of Queen Elizabeth II.

The Monterary Policy Committee (MPC) meeting was due to take place next week, with a decision on interest rates being announced on Thursday. Instead, the committee’s decision will be announced at noon on September 22.

In its statement, BoE says: "In light of the period of national mourning now being observed in the United Kingdom, the September 2022 meeting of the Monetary Policy Committee has been postponed for a period of one week."

The Bank is expected to raise rates, perhaps to above the 4% mark at the peak to combat rising inflation – currently at 10.1%, with investment bank Citigroup predicting 18% at worst.

The Royal Mourning Period

The UK is entering 10 days of national mourning, where several events, from television programming to football and now official meetings, are being moved or called off.

Upon the news of the Queen’s death, the BoE issued a statement to express its staff’s condolences to the royal family.

BoE governor Andrew Bailey said:

"It was with profound sadness that I learned of the death of Her Majesty the Queen. On behalf of everyone at the Bank I would like to pass on my deepest condolences to the Royal family. For most of us, she is the only head of state we have ever known, and will be remembered as an inspirational figure for our country and the Commonwealth."

The statement also noted that as the first monarch to feature on Bank of England banknotes, the Queen’s iconic portraits are synonymous with some of the bank’s most important work.

Current banknotes featuring the image of Her Majesty the Queen will continue to be legal tender, but a further announcement regarding existing Bank of England banknotes will be made once the period of mourning has been observed.

The Bank's building at Threadneedle Street will fly a flag at half-mast as a mark of respect.

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Sunniva Kolostyak

Sunniva Kolostyak  is data journalist for Morningstar.co.uk

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