BoE gets labour market cheer

The BoE has said it is looking closely at the labour market as it considers whether to raise interest rates from their all-time, coronavirus-emergency low. (File pic shows the BoE building in London)

LONDON: British private-sector employers expect to raise staff pay by an average of 2.5% over the next 12 months, well below the likely rate of inflation, according to a survey that could ease worries at the Bank of England (BoE) about the risk of a wage-price spiral.

The quarterly figures from the Chartered Institute of Personnel and Development (CIPD) suggested companies were taking only cautious steps to battle growing recruitment difficulties.