Companies may be 'hoarding' workers - retaining more staff than needed rather than lay them off - makes it hard for the Bank to know how sticky UK inflation really is
Companies may be 'hoarding' workers - retaining more staff than needed rather than lay them off - makes it hard for the Bank to know how sticky UK inflation really is
“In considering for how long we must retain our restrictive stance before policy should be eased, I think the burden of proof therefore needs to lie in inflation persistence continuing to wane,” she told a conference at Make UK, a manufacturing industry body.She said she believes “two puzzles” in the UK labour market are making it harder to judge the extent to which inflationary pressure may persist.
And she warned that if the hoarding suddenly ended, unemployment could rise more sharply than the Bank had forecast, thereby warranting a cut in interest rates.– its highest since 2008 – along with the majority of the Bank’s nine-strong Monetary Policy Committee , although two members backed a cut. The Bank’s Governor, Andrew Bailey, said last week that a rate cut at the next MPC meeting in June “is neither ruled out nor a fait accompli.”
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chancellor warns Bank of England against cutting interest rates too quickly warning inflation could spike...The Bank of England should avoid cutting interest rates too quickly or risk another inflation spike, Chancellor Jeremy Hunt has warned.
Read more »
Bank of England boss Andrew Bailey forecasts big inflation dropOn this episode of the Investing Show , This is Money's Simon Lambert is joined by Interactive Investor's Richard Hunter for a look at how markets have performed this year and what could happen next.
Read more »
Bank of England boss Andrew Bailey forecasts big inflation dropOn this episode of the Investing Show , This is Money's Simon Lambert is joined by Interactive Investor's Richard Hunter for a look at how markets have performed this year and what could happen next.
Read more »
Bank of England governor Andrew Bailey forecasts another big drop in inflation, boosting hopes for a...The Bank of England 's governor last night forecast another big drop in inflation after it fell to the lowest level since September 2021.
Read more »
Bank of England governor Andrew Bailey forecasts another big drop in inflation, boosting hopes for a...The Bank of England 's governor last night forecast another big drop in inflation after it fell to the lowest level since September 2021.
Read more »
Bank of England governor talks up interest rate cut prospects as inflation eases to 3.2%While Andrew Bailey sees further progress in the battle against inflation, most financial market bets are now firmly placed on a first interest rate cut not happening until August at least.
Read more »