Bank of England under fire for confusing guidance on interest rates


The Bank of England faced criticism from MPs for its confusing guidance on interest rates. Harriett Baldwin, chair of the Commons business select committee, scolded governor Andrew Bailey and his officials for their "confusing running commentary" which made it difficult for businesses and mortgage holders to make decisions. The Bank has also been criticized for its poor forecast on the labor market and for wrongly predicting a recession.

Markets skeptical of Bank of England's forecasts

Despite hints from Andrew Bailey that interest rates will stay high, the money markets are still betting on a cut in June. Some analysts believe a rate cut could come as early as the Spring. The pound, government bonds, and FTSE 100 have also been largely unaffected by Bailey's predictions.

Rift in the Bank of England

Economists have suggested that there is a rift within the Bank of England, with Bailey warning against rate cuts while chief economist Huw Pill says it is not unreasonable for markets to expect lower rates by next summer. Deputy governor Sir Dave Ramsden said that while markets are entitled to their view, that does not mean the Bank is validating it.

Deliveroo riders ruled as self-employed

The UK Supreme Court ruled that Deliveroo riders are self-employed and cannot be classified as "workers" or form staff unions. This decision has significant implications for the gig economy. The Independent Workers Union of Great Britain expressed disappointment with the ruling.

Shell pays zero tax on trading arm profits

Oil giant Shell paid zero tax on over £1 billion of trading arm profits last year because the division is based in the Bahamas. Shell has faced pressure to be more transparent about its trading arm, but it has not disclosed its revenue or number of employees in the division. International companies do not have to pay corporate tax in the Bahamas, where Shell has been based since 2002.

Butcher shortage leads to higher prices

A shortage of butchers is causing prices of sausages and bacon to rise, according to food producer Cranswick. The company has increased prices to cover the cost of hiring extra workers and increased ingredient and energy costs. Cranswick reported a 12% rise in sales and a 41.3% increase in profits.

Capita cuts 900 jobs

Outsourcing company Capita is cutting 900 jobs, with the staff cuts expected to save around £60 million per year. The move comes as Capita aims to deliver efficiency savings. The company was hit by a cyber attack earlier this year, costing £25 million, but recently won a £239 million contract to manage civil service pensions.

One-third of Brits work from home in their pyjamas

A survey by employment site Indeed found that one-third of British workers work from home in their pyjamas an average of 46 times a year. More than half of workers wear something smart on top for video calls but stay scruffy on the bottom half.

AO World returns to profit after introducing delivery charges

Online electrical retailer AO World posted half-year profits of £13 million, compared to a £12 million loss last year, after introducing delivery charges. The company eliminated its international businesses earlier this year to strengthen its balance sheet. However, sales fell 12% to £482 million due to a decline in demand for new mobile phones.

Did you miss our previous article…