The Bank of England postpones the decision on the rate hike

The Bank of England postpones the decision on the rate hike

The Bank of England postpones the decision on the rate hike

Nothing will disturb the mourning observed by the UK following the death of its sovereign Elizabeth II on Thursday. Not even rampant inflation. This Friday, the Bank of England decided to postpone its monetary policy meeting, which is highly anticipated when inflation has surpassed 10% and could double in the next six months.

The Bank of England’s decision on the evolution of its rates, the only monetary lever capable of stemming inflation, was initially to be made public on Thursday. “Due to the period of national mourning in the UK, the September meeting of the Monetary Policy Committee has been postponed for a week. The decision will be announced on September 22 at noon.justified the establishment of the municipality in a statement.

The new British government has proclaimed a national mourning until the queen’s funeral, which is expected to take place in ten days. The announcement of the disappearance of the one who reigned over the United Kingdom and the Commonwealth for 70 years froze the life of the country. Many sporting and cultural events have been postponed, some department stores have closed their doors.

Burning situation for Truss and BoE to manage

On the economic side, massive strikes on the railways and post offices for wage increases were immediately suspended. The major union TUC, which was preparing to open a major conference in Brighton on the cost of living, has given up on holding the event, which could be held later.

In a torrid economic environment, galloping inflation, the energy crisis and collapsing purchasing power, the Bank of England’s choices are carefully examined and controlling the rise in prices is its overriding prerogative.

Although its governor has gradually raised rates since late 2021, this has so far had no impact on UK inflation and the BoE is accused of waiting and being reluctant given the parallel risk of recession in the event of a sudden rise in the cost. some money.

Under social pressure before the Queen’s death, new Prime Minister Liz Truss did not hesitate to release massive aid on Thursday for British households and businesses, which notably includes a cap on bills of £ 2,500 per year for an average family. . If it plunges the country into a picture and a meditation, national mourning should not placate the economic situation that Liz Truss’s government will have to manage urgently.

United Kingdom: Unions suspend strikes after Elizabeth II’s death