Bank of England has not cut interest rates, companies lay off employees to cope with cost pressure

According to Kingsen data, Marion Amiot, chief British economist at S&P, said that the Bank of England has not chosen to cut interest rates, and there is little possibility of easing monetary policy this year. Enterprises respond to the pressure of rising labor costs through layoffs, which is due to the increase in minimum wage standards and the increase in employers' national insurance contributions. Corporate profit margins are squeezed, and productivity has failed to increase simultaneously, exacerbating cost pressure. Strong wage growth drives structural unemployment and high inflation may be deeply rooted as economic activity accelerates.