July 22, 2024

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Bank of England delays interest rate decision after Queen’s death

In light of Queen Elizabeth II’s passing, the Bank of England has decided to delay making a crucial decision about interest rates.

It stated that the Monetary Policy Committee’s conclusion would now be made public at noon on September 22, “in consideration of the period of national sorrow.”

Following the passing of Britain’s longest-reigning monarch, various public bodies changed their schedules for the upcoming week.

Rate increases by the bank were generally anticipated for Thursday.

The central bank of the UK was expected to increase interest rates to 2.25%, the highest level since December 2008.

To rein in rising prices, the bank hiked interest rates last month by the largest margin in 27 years. Additionally, it implied that the UK economy would experience a recession this year.

Borrowing money may become more expensive due to higher interest rates, which will reduce consumer spending and slow the rate of inflation. Some have questioned the effectiveness of UK rate increases in the face of inflation brought on by international problems.

When the lockdown was removed and the economy began to normalise, energy prices shot up.

As a result of Russia drastically cutting its gas supplies to Europe, they have grown even more.

Gas prices have increased across the continent, including in the UK, with significant negative spillover effects on consumers.

With inflation at 10.1%, prices are rising more quickly than they have in the last 40 years.

To avoid widespread hardship, the prime minister declared on Thursday that the government would put a two-year cap on energy price increases for all households.

Up until 2024, the yearly cap on typical household energy costs will be set at £2,000.

The massive support programme, according to analysts, might cost up to £150 billion, but Ms Truss, who announced the package, claimed that “exceptional circumstances call for extraordinary measures.”

More information is anticipated at the end of the month when the chancellor is anticipated to present costings in a “fiscal event,” in which he will specify the amount of borrowing required and any additional tax measures he believes are required to pay for the support package.