{"id":198705,"date":"2025-06-20T02:26:22","date_gmt":"2025-06-20T02:26:22","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/198705\/"},"modified":"2025-06-20T02:26:22","modified_gmt":"2025-06-20T02:26:22","slug":"bank-of-england-boss-andrew-bailey-sounds-alarm-over-jobs-as-it-leaves-interest-rates-on-hold","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/198705\/","title":{"rendered":"Bank of England boss Andrew Bailey sounds alarm over jobs as it leaves interest rates on hold"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS<\/a> <\/a> <\/p>\n

Updated: 17:00 EDT, 19 June 2025 <\/p>\n

Bank of England Governor Andrew Bailey yesterday sounded the alarm over the darkening outlook for jobs as it left interest rates<\/a> on hold \u2013 but opened the door to a cut in August.<\/p>\n

He said there had been \u2018signs of softening in the labour market\u2019 as a Bank survey found that UK employers are slamming the brakes on pay rises as a result of Rachel Reeves\u2019 \u00a325billion raid on employers\u2019 National Insurance.<\/p>\n

Global events are also \u2018highly unpredictable\u2019 as conflict in the Middle East pushes up oil prices and US tariffs also take their toll.<\/p>\n

The comments are the latest evidence undermining Government claims that it is turning the economy around.\u00a0<\/p>\n

Recent figures showed more than 100,000 UK jobs were lost in May with a quarter of a million axed since the Budget.<\/p>\n

Growth in the first quarter of this year was followed by a downturn in April, when GDP slumped 0.3 per cent.<\/p>\n

\"Jobs <\/p>\n

Jobs gloom: Bank of England Governor Andrew Bailey said there had been \u2018signs of softening in the labour market\u2019\u00a0<\/p>\n

Employment growth is also \u2018near zero\u2019. The Bank\u2019s monetary policy committee left interest rates at 4.25 per cent, citing the need for a \u2018gradual and careful\u2019 approach.<\/p>\n

But three of the nine members voted for a cut, fuelling hopes of a rate slash in August.<\/p>\n

Inflation<\/a> is 3.4\u00a0per cent and expected to climb close to 4\u00a0per cent by the end of the year. The feedback from the Bank\u2019s survey was bleak.<\/p>\n

Many firms are in \u2018wait-and-see\u2019 mode on tariffs while investment intentions are being held back by factors such as \u2018fragile demand, trade developments, Government tax and labour policies\u2019.<\/p>\n

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\n Bank of England boss Andrew Bailey sounds alarm over jobs as it leaves interest rates on hold<\/p>\n