BoE's Vlieghe has told the Newcastle Journal....>

BOE: BoE's Vlieghe has told the Newcastle Journal that "workers' pay is set to

rise after years of low growth but not at any great rate."

- Vlieghe said that "at some point the unemployment rate is low enough that it

gets increasingly difficult for employers to find workers or keep the ones they

have. We are seeing that in a number of indicators. The unemployment rate is at

a 43-year low. We are also seeing reports of skills shortages at cyclical

highs."

- Vlieghe noted that "job turnover is back at a cyclical high. That creates pay

pressures as their companies try to attract employees and stop their own from

leaving."

- Vlieghe stated that "we are talking about wage growth being about 2% for a

couple of years. It is now at about 2.5% or 3%."

- Vlieghe also highlighted a high level of underemployment.