-
Bailey Says Workforce Dropouts Hit UK’s Growth and Stoke Prices
Changing attitudes to work since the pandemic and sluggish business investment have hit the UK’s economic capacity and kept inflation elevated, Bank of England chief Andrew Bailey said. Speaking to an audience of central bankers hosted by the Group of 30 in the Moroccan city of Marrakech, he said potential growth in Britain has fallen from 2.25%-2.5% in the past to “at best, 1.5%.” “That complicates monetary policy,” Bailey observed. He also signaled that interest rates are likely remain at around the current 5.25% as policy “has to be restrictive” to get inflation back to 2%. “The last mile will be ... (full story)