12 September 2022 - Economy grounds to a halt as morning begins

Beyond Currency

The Monetary Policy Committee meeting that was scheduled to take place this week has been postponed and put back a week as the nation mourns the death of Queen Elizabeth II. The meeting now due to take place on September 22nd is expected to hike rates possibly by seventy-five basis points as inflation continues to rise. The latest figures for CPI will be released on Wednesday, with headline inflation likely to have reached 10.5%. It is hoped that the announcement by the government of its plans to provide support for consumers by limiting the rise in the energy price cap to £2,500 for an average family will see inflation top out sooner than has been predicted recently. The rise next month in the energy cap has been halved which will come as a major relief to the lowest paid, while any proposed increase in 2023 has been shelved. It is unclear if this package has been fully costed by it is expected that the cost will be around £90 billion pounds. It was a momentous week in the UK with the end of the second Elizabethan era with the passing of the Queen. On Tuesday, she had welcomed her fifteenth Prime Minister and the third female. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.