Post by account_disabled on Feb 27, 2024 1:38:02 GMT -5
UK businesses expect inflation and wage growth to slow, according to a closely watched monthly survey by the Bank of England, providing some relief to policymakers ahead of the interest rate decision later of this month. Producer prices are expected to rise 4.9 percent over the next 12 months, according to the August Decision Maker Panel, a survey of UK chief financial officers, published on Thursday. The figure, based on a three-month moving average, represents a drop of 0.5 percentage points from July and well below the peak of 6.6 percent reached in September last year. Wage growth prospects also fell to an average of 5.1 percent, continuing a downward trend from a high of 6 percent at the end of 2022. James Smith, an economist at ING, said the data provided "good news" for the central bank's rate-setting committee.
With two weeks to go until the Bank of England's next rate decision, there is a growing sense that the rate hike cycle is peaking and the latest data from the Decision Maker Panel has offered further arguments Jordan Mobile Number List to that history," he added. The outlook for both producer price inflation and wage growth was well below the reported figures for the past 12 months of 7.4 percent and 6.9 percent respectively, the survey showed. The findings echo comments by Andrew Bailey, governor of the Bank of England, earlier this week, when he noted that a further rise in interest rates may not be necessary. “The question now is how general inflation will go down.
We see inflation expectations continue to decline? And will that be reflected in the salary negotiation? he told MPs, noting that interest rates were now “much closer” to their peak than before. Recommended Commuters pass the Bank of England in the City of London. Markets still expect the central bank to raise interest rates by a quarter point this month from 5.25 percent. The survey found that more than half of companies still report hiring problems, a factor that has led to strong recent pay growth, although it has fallen from 70 percent of CFOs at the beginning of the year. Further evidence of a cooling of the labor market comes from data published by the Office for National Statistics on Thursday. It showed that 10 percent of companies reported hourly wages had increased month-on-month in July, up from one in four in April.
With two weeks to go until the Bank of England's next rate decision, there is a growing sense that the rate hike cycle is peaking and the latest data from the Decision Maker Panel has offered further arguments Jordan Mobile Number List to that history," he added. The outlook for both producer price inflation and wage growth was well below the reported figures for the past 12 months of 7.4 percent and 6.9 percent respectively, the survey showed. The findings echo comments by Andrew Bailey, governor of the Bank of England, earlier this week, when he noted that a further rise in interest rates may not be necessary. “The question now is how general inflation will go down.
We see inflation expectations continue to decline? And will that be reflected in the salary negotiation? he told MPs, noting that interest rates were now “much closer” to their peak than before. Recommended Commuters pass the Bank of England in the City of London. Markets still expect the central bank to raise interest rates by a quarter point this month from 5.25 percent. The survey found that more than half of companies still report hiring problems, a factor that has led to strong recent pay growth, although it has fallen from 70 percent of CFOs at the beginning of the year. Further evidence of a cooling of the labor market comes from data published by the Office for National Statistics on Thursday. It showed that 10 percent of companies reported hourly wages had increased month-on-month in July, up from one in four in April.