A Bank of England chief has sparked outrage by suggesting pay rises for struggling folk in the cost-of-living crisis are too high.
Top economist Huw Pill, who earns £190,000 a year, reckons recent pay rises across Britain could risk fuelling inflation. He spoke out after official figures showed civil service bonuses helped to push pay growth to a two-year record.
The Oxford grad, right, said growth of 7.7% in average salaries was “not consistent” with the Bank’s target of 2% inflation. Mr Pill’s comments come after Bank of England bosses got called hypocrites in July after giving staff £25million in bonuses while urging pay restraint.
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He added: “But actually over the summer pay growth has remained very strong and we certainly wouldn't see pay growth of that rate as consistent with achieving the 2% inflation target on an ongoing basis. If you ask me where I think the sort of risk to the risks is, it's probably still on the fact that we may be seeing more momentum and more persistence than really is ideal to get us back to the 2% inflation target.”
Mark Serwotka, leader of civil service union PCS, claimed the Bank’s continued call for wage suppression is a key reason behind the “catastrophic collapse” in living standards. He said: “Improving wages is vital to combat the crisis people are suffering. Improved pay in the public sector would have a knock-on effect of creating growth in the economy that this country so desperately needs.”
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Luke Hildyard, of the High Pay Centre, called the Bank “almost detached from reality”. He said: “When super rich bankers and CEOs rake in obscene pay awards, it isn’t helpful to blame inflation on ordinary people wanting their income to keep up with the cost of living.”
The Bank of England has been contacted for comment.
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