No short-term increase in unemployment, Bank of England predicts
Unemployment is unlikely to increase in the second quarter of 2023, a Bank of England official has told businesses in Coventry and Warwickshire.
Graeme Chaplin, the Bank of England’s Agent in the West Midlands, met members of the Coventry and Warwickshire Chamber of Commerce on a virtual roundtable to update firms on the economy and to hear how firms in the region are faring.
He heard from a range of companies on their prospects for growth, cost rises, and recruitment and retention of staff to help inform the decision making of the Bank’s Monetary Policy Committee.
Graeme said the UK economy has been subject to a sequence of very large and overlapping shocks but monetary policy will ensure that inflation will return to the two per cent CPI target sustainably in the medium term.
He said: “The UK is currently experiencing high CPI inflation, a tight labour market and subdued GDP growth. Global growth is expected to be stronger than we projected back in February and consumer price inflation in advanced economies has remained elevated. However, wholesale gas futures and oil prices have fallen materially.
“UK economic activity is likely to have been broadly flat around the turn of the year, but is now expected to increase slightly in the second quarter. CPI inflation is expected to fall significantly in the second quarter of 2023.”
Sean Rose, head of policy at the Coventry and Warwickshire Chamber of Commerce, said: “It is always great to meet Graeme from the Bank of England as he offers members up to the minute intelligence on the economy and the latest information from the Bank. It’s also an ideal opportunity for businesses to explain the issues they are facing and talk about their own prospects for the months ahead.
“The details from the individual companies remains anonymous so they can talk openly and candidly to give Graeme the most accurate insight.”
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