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Wall Street Journal

U.K. Pay Growth Has Some Way to Go Before It Normalizes, Says BOE's Bailey

There is growing evidence that U.K. businesses are responding to higher employment taxes by trimming jobs and pay, rather than raising their prices, Bank of England Governor Andrew Bailey said Thursday. The government increased its tax on employment at the start of April, and BOE policymakers worried that would prompt businesses to hike their prices to cover their increased costs. That could have added to a rebound in inflation that the BOE fears could become long lasting.