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2025-09-18 19:38:27
[Inflation remains stubborn, putting the Bank of England in a structural dilemma] ⑴ S&P Global Ratings' Chief Economist for the UK noted that the Bank of England will maintain interest rates as expected, and further monetary easing this year is highly unlikely. ⑵ Businesses are responding to labor cost pressures from rising minimum wages and national insurance costs by cutting jobs. This adjustment process is suppressing profit margins and failing to keep pace with productivity gains. ⑶ Continued strong wage growth suggests the UK faces the risk of rising structural unemployment, and inflation could further entrench if economic activity accelerates. ⑷ Current economic data suggests that stubborn inflationary pressures have become persistent, which will continue to constrain the Bank of England's policy flexibility.
