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Reuters
20 hours ago
- Business
- Reuters
UK services inflation is proving sticky, BoE's Lombardelli says
LONDON, June 19 (Reuters) - Bank of England Deputy Governor Clare Lombardelli said on Thursday that British services price inflation - a key measure of domestic price pressures - remained "sticky" despite data showing a slight fall in May. Lombardelli, who was speaking after the central bank kept interest rates at 4.25% in a 6-3 vote split earlier on Thursday, also said the slowdown in Britain's labour market was as expected. "We've seen a rise in a number of elements of inflation. Services inflation is proving to be quite sticky, but we've also seen recent rises in energy prices, other regulated prices," Lombardelli told reporters. "We are seeing some broad weakening in the labour market. I mean, this is in line with what we expected, and actually quite similar to what we set out in our latest Monetary Policy Report in May, but it's important that we consider those changes," she added. Figures published on Wednesday showed British inflation fell to 3.4% in annual terms in May, and service price inflation cooled more than expected to 4.7% from 5.4% in April.
Sky News
a day ago
- Business
- Sky News
Bank of England holds rate but eyes cuts ahead despite global risks
The Bank of England has signalled that a weakening labour market could yet trump rising global challenges to allow for more interest rate cuts in the near term. Policymakers on the nine-member monetary policy committee (MPC) voted 7-3 to maintain Bank rate at 4.25%. There was greater support than was expected for a cut. The Bank had previously signalled that a majority on the committee were cautious about the effects of global instability - especially the on-off US trade war. But the minutes of the Bank's meeting showed there was a greater focus on a rising jobless rate and evidence that employers are shedding jobs - indicating it had dominated the meeting. It acknowledged, however, that there were potential challenges from the on-off US trade war and as a result of the Israel-Iran conflict. The barrage of warheads has already resulted in double-digit percentage spikes to oil and natural gas prices in the space of a week. "Interest rates remain on a gradual downward path," governor Andrew Bailey said while adding that there was no pre-set path. "The world is highly unpredictable. In the UK we are seeing signs of softening in the labour market. We will be looking carefully at the extent to which those signs feed through to consumer price inflation," he added. The Bank maintained its core message that it would take a "gradual" and "careful" approach. "Energy prices had risen owing to an escalation of the conflict in the Middle East. The committee would remain vigilant about these developments and their potential impact on the UK economy," the Bank said. The rise in the UK's jobless rate, along with recent data on payrolled employment, has been linked to a business backlash against budget measures, which kicked in in April, that saw employer national insurance contributions and minimum pay demands rise. While a weaker labour market, including a fall in vacancies, could allow room for the Bank to react through further interest rate cuts, the spectre of war in the Middle East is now clouding its rate judgements. The last thing borrowers need is an inflation spike. The UK's core measure of inflation peaked above 11% in the wake of Russa's invasion of Ukraine - giving birth to what became known as the cost of living crisis. 1:21 Inflation across the economy was driven by unprecedented spikes in natural gas costs, which pushed up not only household energy bills to record levels but those for businesses too - with the cost of goods and services reflecting those extra costs. Borrowing costs have eased, through interest rate cuts, as the pace of price growth has come down. The rate of inflation currently stands at 3.4% but was already forecast to rise in the second half of the year before the aerial bombardments between Israel and Iran had begun. LSEG data shortly after the Bank of England minutes were published showed that financial markets were expecting a quarter point cut at the Bank's next meeting in August and at least one more by the year's end. Please refresh the page for the fullest version.
News.com.au
a day ago
- Business
- News.com.au
Unemployment rate at 4.1 per cent since January
HSBC Australia Chief Economist Paul Bloxham discusses the Australian unemployment rate and its impact on the labour market. 'I think the main thing to focus on is the unemployment rate, and the unemployment rate is steady at 4.1 per cent, which is quite a low rate,' Mr Bloxham told Sky News host Ross Greenwood. 'The unemployment rate's tracking sideways, the labour market's still actually fairly tight.'
Telegraph
3 days ago
- Business
- Telegraph
Rayner's ‘jobs police' could intimidate political enemies, Lords warn
Angela Rayner's workers' rights overhaul risks creating an employment police force capable of intimidating political enemies, peers have warned. Lord Carter of Haslemere, a former general counsel to the Prime Minister, has claimed that new powers designed to give ministers the ability to search and arrest people for labour market offences could be abused. He said: 'Effectively, the Secretary of State will, through his or her enforcement officers, have his or her own employment rights police force to direct operationally in whatever way he or she chooses. 'This is in contrast, for example, to our regular police forces and the National Crime Agency, which are both operationally independent of the Home Secretary.' He is demanding that the so-called 'jobs police', which will be introduced as part of the Employment Rights Bill, 'enjoy complete operational independence from ministers and their advisers' to avoid politicians abusing their new powers. Lord Carter said: 'It is not impossible to imagine an unscrupulous Secretary of State requiring them to operate in a way that is not in the public interest and might even constitute an abuse of power, to target an unfriendly media organisation for political purposes or for some other wholly inappropriate purpose.' 'Real teeth' The former government lawyer is among a growing number of peers to have raised concerns about the planned strengthening of workers' rights in recent months as the House of Lords examines individual parts of Ms Rayner's Bill. The latest focus has been on the Fair Work Agency, which is set to become a new super regulator that will fold in several existing units. Current plans will see the new body have 'real teeth' to punish companies that treat staff badly or fall foul of the new rules. This means the agency will have the ability to inspect workplaces, levy fines or bring proceedings in the employment tribunal on a worker's behalf. While supporters argue that it will make the system less fragmented by combining several units into one, critics have raised fears that the new body could spook small business owners who don't have large legal teams. The package of reforms, spearheaded by Ms Rayner, includes handing staff full employment rights from the first day in a job and strengthening the power of unions in the workplace. Businesses could, for example, face thousands of pounds in penalties if they fail to tell staff in writing that they have a right to join a union. Addressing fears about the new enforcement body, Baroness Jones of Whitchurch, the business minister, argued that 'while the Secretary of State will set the overarching direction and priorities of the fair work agency through its enforcement strategies, they will not direct the day-to-day operation of staff'.
Zawya
4 days ago
- Business
- Zawya
Oman: Labour Ministry outlines mechanism to ensure Omanisation requirements
Muscat: The Ministry of Labour has announced the implementation mechanism for the decision requiring each commercial registration that has completed one year of establishment to employ at least one Omani citizen. The new policy, which supports national workforce development and labour market regulation, was first outlined in a Ministry statement issued on 5 May 2025. The mechanism applies to all commercial establishments, with specific provisions based on the nature and size of the entity. A. Foreign Investment Establishments 1. Foreign-owned businesses with a commercial registration older than one year must submit an employment plan to hire at least one Omani citizen within three months. 2. Recruitment may be completed either directly or through a clear employment plan that results in actual hiring. 3. A total ban on issuing new work permits will apply to any non-compliant establishment, regardless of employee count. 4. A grace period of no more than three months will be given from the date of official notification. 5. This mechanism has been developed in coordination with the Ministry of Commerce, Industry and Investment Promotion. B. Establishments Employing More Than 10 Workers 1. These businesses must submit an employment plan to recruit at least one Omani within three months. 2. Recruitment may occur either directly or through a viable employment plan. 3. Notifications will be sent through the Ministry's electronic system. 4. If the business fails to comply, the system will automatically impose a ban on issuing new work permits. C. Establishments Employing Fewer Than 10 Workers 1. These entities must submit a plan to employ one Omani citizen within six months. 2. All such businesses will undergo a case review within six months to assess their contribution to local value addition. 3. Compliance can be achieved through direct hiring, a viable employment plan, or, if value addition is demonstrated, a temporary exemption. 4. Non-compliance will trigger an automatic ban on new license issuance via the Ministry's system. D. Entrepreneurs and Full-Time Business Owners 1. Establishments owned by entrepreneurs or full-time business owners will be given a one-year grace period to meet the Omanisation requirement. 2. A case review will be conducted within six months to evaluate the entity's local economic contribution. 3. Entrepreneurs who do not currently hold a Riyada Card may apply through the Small and Medium Enterprises Development Authority to obtain one and benefit from associated exemptions and facilities. The Ministry urged all concerned establishments to comply with the new regulations to avoid penalties and support national employment goals. © Muscat Media Group Provided by SyndiGate Media Inc. (
