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- Bank of England Monetary Policy Committee member Ian McCafferty: wage growth could pick up faster once inflation starts to rise
Bank of England Monetary Policy Committee member Ian McCafferty: wage growth could pick up faster once inflation starts to rise
Bank of England (BoE) Monetary Policy Committee (MPC) member Ian McCafferty said in a speech on Wednesday that wage growth could pick up faster once inflation starts to rise.
"Although the pick-up in wages as the labour market has tightened appears to have been interrupted by current low inflation, once CPI (consumer price index) inflation starts to rise, behaviour is likely to revert, and wage inflation may rise surprisingly quickly in response," he said.
McCafferty noted that the uncertainty around the referendum on Britain's membership in the European Union weighed on business investment in Britain.
"Very recently there have been some signs that increased uncertainty linked to the outcome of the EU referendum to be held on 23 June may weigh on investment in coming months, such that we may see a slight softening in GDP growth through the summer," he said.
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