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Pay rises and profits must be curtailed to get UK inflation back under control, Bank warns

Deputy governor says wage increases are still higher than average and there is ‘some way to go’ to return to 2% inflation target

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Victory in the war on inflation will require British workers to accept lower pay deals and companies to rein in their profits, a senior Bank of England policymaker has said.

Sarah Breeden, one of the central bank’s four deputy governors, said there was still “some way to go” before inflation would fall back to the 2% target set by the government for the Bank to achieve on a sustainable basis.

Continue reading…Deputy governor says wage increases are still higher than average and there is ‘some way to go’ to return to 2% inflation target• Business live – latest updatesVictory in the war on inflation will require British workers to accept lower pay deals and companies to rein in their profits, a senior Bank of England policymaker has said.Sarah Breeden, one of the central bank’s four deputy governors, said there was still “some way to go” before inflation would fall back to the 2% target set by the government for the Bank to achieve on a sustainable basis. Continue reading…

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