• Bank of England delays interest rate decision following the death of Queen Elizabeth II.

    The Bank of England has postponed an important decision on interest rates in the wake of the death of the Queen Elizabeth II.

    It stated it was "in light of the period of national mourning", the Monetary Policy Committee's decision will be announced at noon on the 22nd of September.

    This comes after moves made by a number of public bodies to modify what they are planning for next week following the passing of the longest-reigning monarch in Britain.

    The Bank was widely expected to raise rate on Wednesday.

    The forecasts of economists suggested that the central bank of the United Kingdom will increase rates to 2.25 percent - the highest rate in a month since Dec. 2008.

    This month in the month of April, the Bank increased rates of interest by the biggest amount in 27 years, in an effort to keep prices rising in check. The Bank also forecasted that the UK economy would slide into recession by the end of this year.


    A higher interest rate can make borrowing more costly and people may are able to spend less and prices won't rise in the same speed. But, there are some who question the effectiveness UK rate increases can be in the event of inflation caused by global concerns.

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    Prices for energy rose sharply after the lockdown was lifted and economy began to return to normal. They've risen even more since Russia abruptly reduced the supply of gas to Europe. This has raised the cost of gas across the globe, including in the UK and has had a significant negative impact on the consumers.

    Speaking before the Treasury Committee earlier this week the Bank of the United Kingdom's Governor, Andrew Bailey, defended its record of performance: "The person going to put the UK in recession is Vladimir Putin, not the MPC [Monetary Policy Committee]."

    He also said that the Bank will take the Prime Minister's Energy Plan announcement "into account" when next choosing interest rates.

    During her campaign, Truss attacked her opponent, the Bank of England, accusing it of taking too long in responding to the rise in prices and to protect vulnerable households.

    However, the new Chancellor Kwasi Kwarteng has reaffirmed the "full support for the independent Bank of England and their mission to control inflation, which is central to tackling cost of living challenges".

    He has also announced that both he and Mr Bailey will meet twice per week starting from this point to discuss the growing price of living.

    Prices are increasing at their fastest rate in the last 40 years, and inflation is currently at 10.1 percent.

    Updated on 4:54-am September 10,2022

    Tags: UK economy, Andrew Bailey