Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

BoE's Haskel says labour market too hot to think of rate cuts

Published Nov 28, 2023 13:17 Updated Nov 28, 2023 13:25
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A general view of the Bank of England (BoE) building in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska/File Photo

LONDON (Reuters) - Bank of England interest-rate setter Jonathan Haskel said the inflationary heat still in Britain's labour market suggested there was no way to cut interest rates from their 15-year high any time soon.

"The labour market is still historically tight. At current rates of change it would take at least a year to fall back to average pre-pandemic tightness," Haskel said in a text copy of a speech he was due to make later on Tuesday.

"Rates will have to be held higher and longer than many seem to be expecting."

Haskel's message echoed that of most members of the BoE's Monetary Policy Committee which this month kept borrowing costs on hold for a second meeting in a row after 14 back-to-back increases but said they were likely to have to stay high.

Haskel said people in Britain were finding it harder to get work suited to their skills than before the coronavirus pandemic and the country's long-standing problem of weak productivity growth was also adding to inflation pressures.

Earlier on Tuesday, Deputy Governor Dave Ramsden sought to hammer home the BoE's message that "monetary policy is likely to need to be restrictive for an extended period of time."

On Monday, Governor Andrew Bailey said it was too soon to think about cutting interest rates as the BoE faced the "hard work" of getting inflation down to its 2% target from the latest reading of 4.6%, higher than in many other economies.

 

BoE's Haskel says labour market too hot to think of rate cuts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Dariusz Skora
Dariusz Skora Nov 28, 2023 23:09
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Uk before brexit was the fastest developing economy in a world thats a fact and now its entering a recession well done banks trying to take iff that cash off the streets they have orinted and given during oandemic and narrow minds of uk population are taking over open minds i think its povetry and growing deprivation areas in uk its a big problem,uk once a great country now its a failing country…
Chris Chadwick
Chris Chadwick Nov 28, 2023 16:13
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wage inflation is public sector only, which doesn't respond to interest rate.
Stephen Donald
Stephen Donald Nov 28, 2023 15:06
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In the UK, cartels of Supermarkets, petrol retailers, energy companies, online e-tailers, insurance companies…….these and others put investors first to everone else’s detriment. This stokes inflation meaning higher costs to consumers. That’s why wage inflation remains stubbornly high. The whole economic cycle is called ‘Rip Off Britain.’ This and Brexit has caused extreme difficulties in getting inflation down. There are more ways than just Monetarism to control inflationary pressures but the BoE just can’t see that.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email