The Bank of England (BoE) announced that its Monetary Policy Committee meeting on September 15 was postponed. BoE postponed the interest rate decision, which was highly anticipated by the markets, to September 22.
The said decision II. It was taken because of the declaration of 12 days of mourning in the country after Elizabeth’s death.
BoE lastly increased the policy rate by 50 basis points to 1.75 percent in August. This was the highest rate hike in 27 years.
‘PRIORITY OF 2 PERCENT INFLATION TARGETS’
In a press release after the decision in August, BoE Chairman Andrew Bailey said, “Our priority is the 2 percent inflation target. Everything is possible during and after our meeting in September.”
In the latest survey of Reuters, a 50 basis point increase expectation for the September meeting came to the fore. Economists expect the BoE to step on the brakes in November and be content with a 25 basis point increase.
EXPECTED TO CONTRACT NEXT YEAR
Inflation in the UK rose to 10.1% in July, the highest in 40 years. In August, the BoE announced its year-end inflation forecast as 13 percent. In addition, the bank announced that it expects the economy to contract in the last quarter of 2022 and that the contraction will continue in 2023.
He conveyed his condolences
Bailey Queen II. In a written statement following Elizabeth’s death, she said: “It is with deep sadness that I learned of Her Majesty’s death. On behalf of everyone at the Bank, I would like to extend my deepest condolences to the Royal family. For most of us, he was the only head of state we have ever seen. He will be remembered as an inspiring figure for our country and the Commonwealth of Nations. BoE “The iconic portraits of the Queen, the first monarch to appear on banknotes, are synonymous with some of our most important work. Existing banknotes featuring the Queen’s image will continue to be legal tender. A new announcement on existing BoE notes will be made after the mourning period.” .