5/11/2017, 1:45 PM (Source: TeleTrader)
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Carney: Wages will catch up to inflation in one year

Some degree of inflation can be tolerated and the Bank of England sees it declining to meet the aim close to the end of the forecast period through 2020, Governor Mark Carney said on Thursday after policymakers maintained current measures and bank rate unchanged. He told reporters in London uncertainty is undermining the determination of companies to lift wages and that the pace has been slow compared to historical experience. The squeeze on real incomes against prices is seen wearing out in the next year, he stressed. 

A slight drag on productivity is included in the forecast for the period during the negotiations with the European Union on Britain's exit from the bloc, but sharp adjustments in the economy aren't expected, according to the chief rate-setter.

Baha Breaking News (BBN) / IT