Bank of England coming to County Durham for live event

Prices are currently rising at an annual rate of 10.7% – significantly above the Bank of England’s 2% target.

Recently the Bank took the decision to increase interest rates to 3.5% as part of an effort to ensure that inflation does not remain at such high levels for a long time.

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The event in Chester-le-Street on January 16 from 5.30-7.30pm will give people the opportunity to quiz Bank officials about its decisions. The event was rescheduled from September when it was cancelled due to the period of mourning following the Queen’s death.

Catherine Mann, a member of the Monetary Policy Committee which sets interest rates, will be in attendance alongside representatives from the Bank’s Agency for the North East which monitors activity in the region’s economy.

The current high level of inflation is mainly due to high gas prices as a result of Russia’s invasion of Ukraine. These price rises have forced up household energy bills.

There are now signs that domestic pressures – notably in the labour market – could push prices up further.

The Bank has forecast that inflation could stay above 10% in early 2023 before falling back sharply.

Mauricio Armellini

Mauricio Armellini, the Bank’s Agent for the North East, said: “Interest rates have been very low in the UK for some time but we have been increasing them over the last 12 months. We know many people will find this hard because it makes borrowing money more expensive.

“Increasing interest rates won’t tackle the causes of the very sharp price rises we’re seeing right now. But it will reduce the risk that the current high rate of inflation lasts for a long time. Persistently high inflation would inflict even greater pain on households over a number of years.”

The Bank has been running its Citizens’ Forum programme across the UK since 2018.

This will be the fifth time it has held a panel for people in the North East.

The event will be chaired by Sarah Green, Chief Executive of the tourism and economic development partnership Newcastle Gateshead Initiative (NGI).

She said: “The cost of living squeeze is impacting people across our region. I would urge people to take this opportunity to share their experiences, and hear first-hand from the Bank about what is happening, and what they are doing about it.”

Anyone aged over 16 is eligible to apply to attend which you can do via the Bank’s website HERE.

Refreshments will be provided and the Bank will cover travel expenses up to £25 per person.