Nothing will disturb the mourning observed by the United Kingdom following the death of its sovereign Elizabeth II on Thursday. Not even runaway inflation. This Friday, the Bank of England chose to postpone its monetary policy meeting, which was extremely expected when inflation exceeded 10% and might double in the next six months.
The decision of the Bank of England on the evolution of its rates, the only monetary lever capable of stemming inflation, was initially to be made public on Thursday. “Given the period of national mourning in the UK, the September meeting of the Monetary Policy Committee has been delayed for a week. The decision will be announced on September 22 at noon.justified the institution of the City in a press release.
The new British government has declared national mourning until the Queen’s funeral, which is to be held in ten days. The announcement of the disappearance of the one who reigned 70 years over the United Kingdom and the Commonwealth froze the life of the country. Many sporting and cultural events have been postponed, some department stores have closed their doors.
Burning situation to manage for Truss and the BoE
On the economic side, the massive strikes in the railways and the post office for wage increases were immediately suspended. The major TUC union, which was preparing to open a major conference in Brighton on the cost of living, has given up on maintaining the event, which might be held later.
In a scorching economic context, galloping inflation, energy crisis and collapsing purchasing power, the choices of the Bank of England are closely scrutinized, control of rising prices being its priority prerogative.
Although its governor has gradually raised its rates since the end of 2021, this has not had any impact on British inflation so far and the BoE is accused of waiting and being reluctant given the parallel risk of recession in the event of a sudden rise. of the cost of money.
Under social pressure before the Queen’s death, the new Prime Minister Liz Truss did not hesitate to release massive aid on Thursday for British families and businesses, which notably provides for a ceiling on bills at 2,500 pounds per year for an average household. If it will plunge the country into a framework and meditation, national mourning should not appease the economic situation that the government of Liz Truss will have to manage urgently.
