© Reuters. FILE PHOTO: A panoramic view of the Bank of England in London, England, October 22, 2021. REUTERS / Tom Nicholson
LONDON (Reuters) – The Bank of England on Friday postponed its interest rate decision next week following the death of Queen Elizabeth, the first time it has delayed its monetary policy meeting since the central bank became independent. Established 25 years ago.
The pound fell half a cent against the dollar as the BoE said it was rescheduling its next announcement on interest rates and other decisions until September 22 from its original date of September 15.
“In light of the period of national mourning being imposed in the United Kingdom, the September 2022 meeting of the Monetary Policy Committee has been adjourned for a week,” the BoE said in a statement.
“The Commission’s decision will be announced at 12 noon on September 22.”
Economists said they mostly expect the BoE to raise rates by 50 basis points, although some financial markets expect an even larger increase of 75 basis points. [nL1N30G0QG]
The BoE has also pushed back its plan to start selling its corporate bonds, much of which accumulated during the COVID-19 pandemic, to September 27.