Influx of Migrant Workers Keeps Lid On Interest Rates

Summary


The Government's so-called "open door" policy to Polish and other migrants from eastern Europe is keeping a lid on wage inflation and indirectly preventing the Bank of England lifting interest rates further, analysts said after another subdued labour market report.

Though official figures showed average earnings pushing higher in the three months to June, analysts said the rise in the labour force had limited the spike and reduced the need for tighter monetary policy.

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Extract


Influx of Migrant Workers Keeps Lid On Interest Rates

The increase in the labour force was evident in the latest employment figures, with the office for National Statistics reporting the number of economically active was up...

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