The head of the Bank of England has asked workers to avoid asking for big pay rises to control inflation, which officials expect to hit 7.25% in April thetimes.co.uk/article/cost-o…
The central bank raised interest rates to 0.5% yesterday in its first back-to-back rate rise since 2004 in an attempt to get a grip on soaring prices thetimes.co.uk/article/bank-o…
Officials said inflation, which is already at 5.4%, would peak higher than the 5% it predicted in November, when a simultaneous rise in energy prices, minimum wages and national insurance contributions comes into effect on April 1 thetimes.co.uk/article/briton…
When asked whether the Bank was implicitly asking workers not to demand big pay rises, Andrew Bailey, who has led the Bank since March 2020, told the BBC: “Broadly, yes”
While it will be “painful” for workers to accept prices would rise faster than wages, some moderation of wage rises is needed to prevent inflation becoming entrenched, he said
Meanwhile, the City has bet on two further interest rate rises by May, despite efforts by Bailey to warn markets not to get “carried away” thetimes.co.uk/article/city-b…
A 91.5% chance has been priced in that the central bank raises interest rates by another 0.25% at its next meeting on March 17, followed by a move to 1% in May
Read the full story here: thetimes.co.uk/article/cost-o…
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