Bank of England delays interest rate decision after Queen’s death

Speaking in front of the Treasury Committee earlier this week, the Bank of England’s governor, Andrew Bailey, defended its track record: “The person going to put the UK in recession is Vladimir Putin, not the MPC [Monetary Policy Committee].”

He also said the Bank would take Prime Minister Liz Truss’s energy plan announcement “into account” when next deciding on interest rates.

During her campaign, Ms Truss hit out at the Bank of England, accusing it of being slow to react to rising prices and protect vulnerable households.

But the new Chancellor, Kwasi Kwarteng, has reiterated his “full support for the independent Bank of England and their mission to control inflation, which is central to tackling cost of living challenges”.

He has also said that he and Mr Bailey would meet twice a week from now on to discuss the rising cost of living.

Prices are rising at its fastest rate in 40 years, with inflation at 10.1%.

On Thursday, the prime minister has announced that the government would limit energy bill rises for all households for two years in an attempt to prevent widespread hardship.

A typical household energy bill will be capped at £2,500 annually until 2024.

Analysts say the huge support scheme could cost up to £150bn, but announcing the package Ms Truss said “extraordinary times call for extraordinary measures”.

Further detail is expected by the end of the month, as the chancellor is expected to set out costings in a “fiscal event”, where he will outline the level of borrowing necessary and any new tax measures he deems necessary to fund the package of support.