Bank of England delays interest rate decision and London Stock Exchange prepares to close after Queen Elizabeth’s death

The Bank of England on Friday postponed by a week an interest rate decision to be announced on September 15 following the death of Queen Elizabeth. The London Stock Exchange opened for trading yesterday morning but said it is likely to close if the late Queen’s funeral becomes a bank holiday and falls on a weekday.

The removals and possible disruption indicate the extent of the official mourning measures, which will continue for weeks but the details of which have not yet been fully finalized by the UK government. The Bank of England’s delayed rate decision is the first since the central bank became operationally independent 25 years ago.

“In light of the period of national mourning now being observed in the UK, the September 2022 Monetary Policy Committee meeting has been postponed by one week,” the BoE said in a statement. “The committee’s decision will be announced on September 22 at 12 noon,” it said.

Economists have said they largely expect the BoE, of which Andrew Bailey is governor, to hike interest rates by another half a percent (50 basis points), though a larger three-quarters percent hike matches this week’s ECB hike , could be in sight .

The death of the British monarch has important practical implications for the Bank as the issuer of British notes and coins. While sterling coins have featured the reining monarch for decades, Queen Elizabeth was the first monarch to appear on banknotes.

The BoE said on Thursday those notes will remain legal tender, with another announcement coming after the mourning period is over, likely to indicate a timetable for the phased introduction of new “Charles III” coins and notes.

Meanwhile, the London Stock Exchange opened as usual on Friday and will be trading in the coming week. However, in a statement published on its website, the exchange operator said it had “recognized public holidays in England and Wales”, indicating plans to close if the day of the royal funeral is a bank holiday and falls on a weekday.

The exchange said it will update markets of any changes.

https://www.independent.ie/business/bank-of-england-delays-rate-decision-and-london-stock-exchange-readies-closure-following-death-of-queen-elizabeth-41977588.html Bank of England delays interest rate decision and London Stock Exchange prepares to close after Queen Elizabeth’s death

Fry Electronics Team

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