Interest rates

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

A decision on whether to raise interest rates next week has been delayed by the Bank of England as a mark of respect after the Queen’s death.

Bank officials were due to meet on Thursday for a monetary policy committee where they were widely expected to raise interest rates in a bid to curb soaring inflation.

Officials said the meeting would instead be held next week, after a period of public mourning. The decision will then be made public on September 22.

A statement from the Bank said: “In view of the period of national mourning currently being observed in the UK, the September 2022 meeting of the Monetary Policy Committee has been postponed for a period of one week.”

The Bank of England, which is independent of the government, controls the management of inflation – or rising prices.

It aims to keep inflation below 2%, but it currently stands at 10.1% and is expected to rise further.

When inflation rises, the price of common consumer goods such as food rises.

The current inflationary spiral is fueled by soaring energy bills fueled by rising global wholesale gas prices following Russia’s war in Ukraine.

When the bank raises interest rates, it becomes more expensive to borrow money. This means things like mortgages are getting more expensive.

The Bank hopes that by raising interest rates, people will want to keep more of their money, spend less, reduce demand for products – thereby lowering the cost of goods.

Her Majesty died on Thursday aged 96

(Getty Pictures)

Her Majesty, who served on the throne for seven decades, died at her residence in Balmoral in Scotland on Thursday.

The official announcement came at 6.40pm shortly after members of the Royal Family rushed to Balmoral to be with the Queen.

Earlier today the House of Commons was told she was under medical supervision as doctors were concerned for her health.

His death marked the end of the Elizabethan era, and leaders at home and abroad paid tribute to the sovereign.

Leading the tributes, King Charles III described his mother as ‘much loved’ and a ‘darling sovereign’.

Liz Truss, the new prime minister, paid tribute in the House of Commons as MPs paid tribute to Britain’s longest-serving monarch.

The new King Charles III shook hands and spoke to three members of staff before boarding the flight to London earlier

(Aaron Chown/PA)

She said: “All of us in this house will support him as he leads our country forward into a new era of hope and progress. Our new Carolean era.

“The crown endures. Our nation endures. And in that spirit, I say God save the king.”

Her speech was met with the approval of MPs with Tory MP Tom Tugendhat, a Home Office minister, shouting “God save the King” from the side gallery as she finished. Liz Truss, the new prime minister, paid tribute in the House of Commons as MPs paid tribute to the monarch.

“All of us in this Assembly will support him as he leads our country forward into a new era of hope and progress. Our new Carolean era.

“The crown endures. Our nation endures. And in that spirit, I say God save the king.”

Liz Truss pays tribute to the Queen in the Commons

(Parliament TV)

Her speech was met with the approval of MPs with Tory MP Tom Tugendhat, a Home Office minister, shouting “God save the King” from the side gallery as she finished.

Labor leader Keir Starmer also paid tribute to the Queen, who he said gave people courage when they needed it most.

He said: ‘Our Queen has played a crucial role as a common thread between the history we cherish and the present we have.’

He added: “Never was this bond more important than when our country was plunged into lockdown at the start of the pandemic.

“His simple message that we would see family again, that we would see friends again, that we would be together again gave people strength and courage when they needed it most.

“But it wasn’t just the message that allowed a shaken nation to tap into those reserves, it was the fact that she was the messenger.”

He added: “At a time when we were loneliest, at a time when we had been separated, she held the nation together as no one else could have. For that we say: thank you. “

The Queen will be in state in Edinburgh and Westminster as part of 10 days of national mourning beginning Friday.

Union flags will be lowered and half-masted at royal residences, government buildings and military establishments and condolence books will be opened at British embassies around the world.