Today’s Bank Holiday In The UK Observes Queen Elizabeth’s Funeral
September 16,2022 09:57:06
The death of Queen Elizabeth II marked the end of an era for England. She is mourned not just by the people in the UK but across the Commonwealth. The day of the funeral, September 19, has been declared a bank holiday in the country.
The Queen’s state funeral will be held at Westminster Abbey, as stated in a Buckingham Palace announcement. The Queen died at the age of 96 at her Balmoral Castle residence in Aberdeenshire, Scotland. She is remembered fondly for her dedication to duty by the people of the nation.
What was the impact of Queen’s death on the FTSE 100 and British Pound?
The week of the Queen’s passing was full of mixed emotions for the country.
Liz Truss was formally announced as the country’s new Prime Minister by the Queen on September 6. The first action by the country’s new leader was to announce a two-year plan to tackle rising energy costs.
Two days after this, the UK’s longest-reigning monarch, Queen Elizabeth II, died peacefully in Scotland on Thursday, September 8. As a result, the Bank of England postponed its policy meeting to September 22. The country’s attention has since been on the preparations for the Queen’s funeral and King Charles III’s coronation.
The pound sterling fell to its 1985-low level of $1.14 during the week of Queen’s demise, but recovered some losses on Friday, September 9. Following a volatile week, the FTSE 100 ended that week with a 1% gain. These gains were likely driven by the Prime Minister’s two-year plan.
So, what investors can expect from the Bank of England’s rate decision?
With inflation continuing to surge, accelerating to 10.1% year-over-year in July, from 9.4% in June, and recording the highest reading since February 1982, the country’s central bank is expected to increase interest rates by another 50 bps at its next meeting.
The country’s economy grew 0.2% in July versus the previous month, recovering from a 0.6% contraction in the prior month. However, the country’s economy grew slower-than-expected during the month, which might result in a less aggressive approach from the central bank.
GBP/USD Prospects
The central bank’s delayed decision on interest rates could impact the GBPUSD pair. The GBP could also come under pressure as the markets speculate on the cost Liz Truss’s tax and spending plan.
In addition, the LSE will remain closed on Monday, September 19.