by Irina Anghel
BNN Bloomberg
(Bloomberg) — Prime Minister Rishi Sunak’s pledge to cap the number of immigrants entering the UK risks colliding with the Bank of England’s effort to keep inflation in check.
Struggling to gain traction in his bid for re-election, Sunak has promised to introduce a strict annual limit on visas issued to those seeking to come to Britain. Economists warn that those curbs could reduce the flow of workers, restraining the UK’s ability to grow without sparking a jump in wages and prices.
Such limits could play into the central bank’s decision on when to lower interest rates, which have been stuck at a 16-year high since last September. While inflationary forces are receding, BOE officials led by Governor Andrew Bailey say they’re watching wage data carefully for signs that those pressures will stick around.