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12/1/2022, 11:11 AM (Source: TeleTrader)
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Investment, employment to drop due to rate hikes - BoE survey

Businesses in the United Kingdom expect investment and employment will decline by 8.4% and 2.3% respectively in 2023 as a result of interest rate hikes, a Bank of England survey showed on Thursday. The Decision Maker Panel (DMP), which polled 2,601 CEOs of British firms in November, forecast that interest rates will increase by one percentage point next year.

The DMP also estimated that inflation will be at 7.2% in November of next year and 3.9% in November 2024. Inflation expectations for 2023 fell by 0.4 percentage points from the October survey.

78% of the polled firms reported it was "harder to recruit new employees compared with normal" in November. Business uncertainty fell slightly in November, with 60% of respondents stating it is "high" or "very high," compared to 65% in October.

Baha Breaking News (BBN) / DJ