Businesses, financial institutions and unions have cancelled or postponed events as a mark of respect to the Queen, with the Bank of England delaying a decision over raising interest rates to tackle soaring inflation.
The central bank said its rate-setting monetary policy committee (MPC) would hold its next meeting due on Thursday a week later than scheduled, as the UK observes a period of national mourning.
In a statement, Threadneedle Street said: “In light of the period of national mourning now being observed in the United Kingdom, the September 2022 meeting of the monetary policy committee has been postponed for a period of one week. The committee’s decision will be announced at 12 noon on 22 September.”
The Bank was widely expected to raise interest rates by at least 0.5 percentage points, from the current level of 1.75%, in response to inflation hitting the highest levels since the early 1980s.
Since the central bank was granted independence to set interest rates by the then chancellor, Gordon Brown, in 1997, it has rarely held meetings outside a strictly planned schedule, which is drawn up at least a year in advance. Several extra emergency meetings have been held in times of economic crises, including the 2008 financial crisis and the Covid pandemic, but delays are unusual.
Britain’s flagship trade union gathering has also been postponed as a mark of respect to Elizabeth II. The TUC said its congress, which was due to start on Sunday in Brighton, would be delayed until later this autumn.
The London Stock Exchange opened for trading as normal on Friday, but is likely to close on the day of the funeral, if a public holiday is called. Lloyd’s of London plans to close its building in the City of London that day as a mark of respect. The world’s biggest and oldest insurance market said it would “cherish the memories” of the monarch’s visits.
Lloyd’s rang the Lutine bell once on Thursday evening to honour the Queen’s death, just after it was announced by Buckingham Palace. The bell used to be rung on the arrival of news of an overdue ship, once for the vessel’s loss and twice for its return, but more recently it has been rung to mark special occasions.
The National Mourning guidance published on Friday states that some businesses may wish to consider closing, or postponing events, especially on the day of the state funeral. However, there is no obligation to suspend business – the decision is at each firm’s discretion.
Corporate events such as drinks parties are being cancelled or postponed. The British Fashion Council (BFC) said London fashion week would still go ahead next week. It would be a pared-down event, said the BFC, adding that “non-core business events” such as parties and openings should be cancelled. However, the luxury UK brand Burberry and the Belgian fashion designer Raf Simons have both cancelled their shows.
Several retailers took the decision to close on Friday, as tributes to the Queen poured in from the business world. The department store Liberty will keep its West End store in London closed until Saturday, saying: “Our heartfelt sympathy and thoughts are with the royal family at this sad time.”
Selfridges’s stores, which closed early on Thursday after the Queen’s death was announced, stayed closed on Friday and will reopen on Saturday. French Connection said it had closed all its stores on Friday.
Tony Danker, the director general of the Confederation of British Industry, led the tributes from British businesses mourning the Queen.
“Throughout her unprecedented 70 years on the throne, HRH Queen Elizabeth II served the nation with distinction as a stalwart example of British values of honour, dignity and resilience. She dedicated her life to the people of the UK and the Commonwealth, providing compassionate and inspirational leadership during the many challenging times of her long reign,” said Danker.
Broadcasters, newspaper publishers, radio stations and social media platforms including Snapchat instituted an unprecedented advertising blackout on Friday.
UK Steel, which represents the country’s steel industry, said: “We all owe her an immense debt of gratitude for the duty and public service to which she dedicated her life in the UK, the Commonwealth and around the world. The sector sends its thoughts and prayers to her family.”
Investors also paid tribute to the Queen. Bill Blain, a strategist at Shard Capital, said the Queen was instrumental in establishing and strengthening Britain’s soft power and global position.
“Riven by crisis, uncertainty and even a growing distrust of our political institutions, we may look unprepared for this latest shock,” wrote Blain. “But, we will gather together in national grief and genuine sadness – together, strong in each other. Our monarchy will continue – our nation will change.”
Strikes by postal and rail workers were cancelled as a mark of respect.
The Bank of England’s decision to delay its meeting of MPC will give it more time to consider options for responding to inflation after Liz Truss announced plans to freeze household energy costs at £2,500 for a typical household for two years from October.
The committee will also be able to consider the latest figures for the economy, labour market and inflation data for August, after the Office for National Statistics confirmed it planned to go ahead with publishing the figures as advertised next week.
