One of the deputy governors of the Bank of England, Sarah Breeden, stated that the UK was still a long way from bringing inflation back to its target of 2%. She believes that businesses should set profit limits and British workers should accept lower wages as a means of reducing price increases (The Guardian).
According to Breeden, annual wage growth rates are still between 6% and 7%, which is considerably higher than it was a few years ago and a few percentage points higher than the rate of inflation. Despite optimistic projections, bank representatives suggest that if current trends continue, inflation will reach 3% by the end of 2024.
The Recruitment and Employment Confederation (REC) and the accounting firm KPMG report that, in January, there was a continued decline in job openings and a further slowdown in the growth of starting salaries. The hiring market hasn’t been in the best shape for a year, according to REC head Neil Carberry, so the Bank of England ought to loosen social standards and cut interest rates.