Most people have heard of the Bank of England, but many might not realise what impact it has on their day to day lives.

As the UK’s central bank, many will know the Bank of England issues cash banknotes. This is part of their role in making sure the Pound Sterling works as it should and allows us to pay for everything we need. They also regulate other banks and financial services companies in the UK.

The Bank of England also sets the official main interest rate for the UK, something which hugely impacts on our day-to-day lives. The Bank’s monetary policy affects us because it has a direct impact on high street bank interest rates.

From early 2009 to August 2022, the base rate never climbed above two per cent - for much of that time, it was below 0.5 per cent. This meant mortgage borrowers and businesses that had taken out loans had manageable interest to pay.

In September 2022, former Prime Minister Liz Truss and Chancellor Kwasi Kwarteng’s ‘mini budget’ caused such chaos in the economy that interest rates shot up from 1.75 per cent in August 2022 to 5.25 per cent in August 2023, where they have remained ever since.

While those with savings will experience slightly better interest income, this sudden rise in the base rate has meant that people with a mortgage or other loans are now paying far more monthly interest than before.

According to the Office for National Statistics, the monthly cost of a new mortgage rose by 61 per cent in the year from December 2021 to December 2022 for the average semi-detached house in the UK. Together with rising energy bills and supermarket prices, this has put many families into great financial difficulty.

Although the Bank of England sets the main interest rates independently, I believe it is important for the Bank’s Governor to understand the real human impact of current interest rates in places like Blackwood, Newbridge, or Risca in my constituency.

That is why I have invited him to come to Islwyn meet with me and other Welsh MPs, so he can be made aware of the impacts on the Welsh economy.

I also raised this with the Secretary of State for Wales in Parliament. Our community should have the opportunity to tell him about our experiences and hear directly from the Governor about the Bank’s decision-making.