No raise in interest rates says BoE deputyStephanie Stanton (Author) Published Date : Aug 26, 2014 15:21 ET
The interest rates will not be raised by the Bank of England till the central bank sees the forecast of a stronger wage development not emerge in the United Kindom. The deputy governor of the Bank of England, Ben Broadbent said so to the media on Saturday.
The deputy governor of the Bank of England told the bankers that the slow growth of wage in the United Kingdom is very unlikely to pick up any time in the near future despite the signs of skills shortage and that the picture remains is murkier further. Ben Broadbent said so to the bankers in Jackson Hole, Wyoming during an annual conference.
According to the deputy governor of the Bank of England, wage demands of the British workers is likely happened due to years of low productivity along with minimal wage hikes. He informed that the slowdown started in the year 2008. The Bank of England last week has cut down the banks forecast for the wage growth by nearly half this year. The cut down was to 1.25 percent.
The Bank of England anticipates the wage growth will recover to 3.25 percent in 2015. The figures being expected by the central bank of England are little lower than the pre-crisis average of 4.25 percent and is being called as uncertain by Broadbent.
According to Broadbent s economic model, people have become more tailored towards lower wage awards. So it s very much likely that the pay growth norm has gradually adjusted to a protracted period of low productivity growth.
Ben Broadbent also said that according to few data wage hikes are likely to be coming any time in the near future.
The chairman of the Federal Reserve, Janet Yellen, echoed sentiments alike to Ben Broadbent for economy growth but has put more pressure on the complex effects of the 2008 financial crunch on the American labour market, government policymaking and the country s economy.
No raise in interest rates says BoE deputy