{"id":178186,"date":"2024-11-19T17:00:02","date_gmt":"2024-11-19T17:00:02","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/19\/bank-of-england-governor-backs-big-retail-on-budget-jobs-warning\/"},"modified":"2024-11-19T17:00:02","modified_gmt":"2024-11-19T17:00:02","slug":"bank-of-england-governor-backs-big-retail-on-budget-jobs-warning","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/19\/bank-of-england-governor-backs-big-retail-on-budget-jobs-warning\/","title":{"rendered":"Bank of England governor backs big retail on budget jobs warning"},"content":{"rendered":"
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The Bank of England governor has said industry lobby group the British Retail Consortium (BRC) was right to warn of job losses as a result of the budget.<\/p>\n

There is a “risk” of unemployment rising due to increases in employers’ national insurance contributions and minimum wage rises announced by Chancellor Rachel Reeves last month, Andrew Bailey told MPs on the Treasury Committee.<\/p>\n

Money blog: Inflation announcement will be bad news<\/strong><\/a><\/p>\n

In a letter to Ms Reeves<\/strong><\/a>, the BRC warned of items becoming more expensive and job cuts stemming from the price pressures placed on firms by the new policies.<\/p>\n

But firms will rebuild their profit margins, according to Mr Bailey.<\/p>\n

He said: “Probably initially there will be more pressure on firms’ margins because it takes them longer to adjust and then they’ll probably rebuild those more profit margins, that is over time”.<\/p>\n

Having previously said the budget could cause inflation to rise<\/strong><\/a>, Mr Bailey on Tuesday said price increases could slow or reverse thanks to the budget policies.<\/p>\n

Fewer jobs would reduce competition among employers for workers, something which could bring down wages.<\/p>\n

Wage rises have been one of the factors identified by Mr Bailey as behind high inflation<\/strong><\/a> since the COVID pandemic.<\/p>\n

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BoE: Inflation expected to rise<\/span>
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How much will borrowing costs fall by?<\/strong><\/p>\n

A member of the Bank’s interest rate-setting Monetary Policy Committee, Professor Alan Taylor, told the MPs he expects interest rates to fall to 3.75% over the next year – down from the current 4.75%.<\/p>\n

Interest rates could be lowered more quickly, he added, if inflation, wage growth and economic expansion are less than anticipated and unemployment ticks higher.<\/p>\n

Why are mortgage rates going up?<\/strong><\/p>\n

When asked why typical fixed-rate mortgages have been going up in recent weeks, Mr Bailey said it was because of US political uncertainty before the election as well as the UK budget.<\/p>\n

He pointed out that since the first interest rate cut in four years<\/strong><\/a>, announced in August, mortgage rates in the market have been lower.<\/p>\n

Brexit and its hardline supporters<\/strong><\/p>\n

Echoing comments he made<\/strong><\/a> about Brexit and the need for increased cooperation with the European Union, Mr Bailey also levelled criticism at hardline Brexiteers.<\/p>\n

“We should be in active dialogue with the EU,” he told MPs.<\/p>\n

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The reason there have been outcomes “better than we feared they would be in 2016-17” for the financial services sector is because of open dialogue with EU colleagues, Mr Bailey said.<\/p>\n

“I find it hard to understand people who seem to say that we should implement Brexit in the most hostile fashion possible.”<\/p>\n

He added: “I take no position on Brexit. I never have. I’ve always said it’s my job to get on and do it and I’ll do it in the best way possible and I think talking, having a relationship with the European Union is the better way to do it.”<\/p>\n<\/p><\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of England governor has said industry lobby group the British Retail Consortium (BRC) was right to warn of job losses as a result of the budget. There is a “risk” of unemployment rising due to increases in employers’ national insurance contributions and minimum wage rises announced by Chancellor Rachel Reeves last month, Andrew […]<\/p>\n","protected":false},"author":2,"featured_media":178187,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/e3.365dm.com\/24\/11\/768x432\/skynews-andrew-bailey-bank-of-england_6741552.jpg?20241107124841","fifu_image_alt":"","footnotes":""},"categories":[603],"tags":[3443,673,995,5002,1200,324,6980,914,4246],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/178186"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=178186"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/178186\/revisions"}],"predecessor-version":[{"id":178188,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/178186\/revisions\/178188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/178187"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=178186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=178186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=178186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}