Bank to delay rates announcement due to VE Day two-minute silence
Britain’s central bank said it will publish the decision at 12.02pm rather than the usual time of noon.
The Bank of England is to delay its decision on interest rates on Thursday because of the two-minute silence to mark the 80th anniversary of VE Day.
Britain’s central bank said it will publish the announcement at 12.02pm rather than the usual time of noon, with its quarterly economic forecasts and minutes of the decision also due to be published two minutes later.
It will mark a rare divergence for the Bank from its traditional noon announcement, which is watched closely by savers, borrowers and financial markets in the UK and worldwide.
The Bank last postponed an interest rates decision in 2022, when it was put back by a week due to the national mourning period following the Queen’s death.
The Bank’s Monetary Policy Committee (MPC) is expected to vote to cut rates to 4.25% from 4.5% when the decision is announced.
Inflation has fallen in recent months, which is likely to indicate to policymakers that interest rates – which are used as a tool to control inflation – can continue to come down.
Consumer Prices Index (CPI) inflation slowed to 2.6% in March, from 2.8% in February, according to the latest official data, though many experts are forecasting it will rise later this year.
The rates decision also comes against a backdrop of mounting uncertainty over the economic outlook due to the global tariff war sparked by US President Donald Trump.
Economists have said UK economic growth is likely to be slowed by elevated levels of uncertainty – with some businesses set to suspend investments and consumers to decrease spending.
Others have said countries such as China, in the face of higher charges on exports to the US, will reroute trade and lower import prices for other countries, which could result in lower prices for UK consumers.
Combined with other factors, including a weaker US dollar and falling oil prices, this could put downward pressure on inflation, according to economists.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said back-to-back rate cuts in May and June could be likely, but added that “accelerating inflation will keep MPC guidance cautious”.
He said: “The MPC can get away with a couple of precautionary rate cuts back to back in May and June given the darker growth outlook, but we think rate-setters will continue to signal a gradual and cautious approach to easing after that.
“The MPC took an extended period to try and return inflation to target after the post-Covid surge, allowing inflation expectations to de-anchor modestly, so they have to put more weight on suppressing inflation now.”
