Lloyds Bank: Weak Output Intensifies Challenges for Bank of England’s Policy Decision

Rise Herbert, Senior Economist at Lloyds Bank, has stated that the Bank of England‘s policy decision in the upcoming policy meeting will face challenges after an unexpected decline in business activity in August.

In a report, Herbert mentioned that the composite PMI index was dragged down by lower-than-expected output in both goods and services, with last month’s retail sales indicating further softening in the coming months.

He pointed out that alongside the subdued output, recruitment difficulties could lead to wage increases. The Bank of England will need to carefully consider this aspect in its next interest rate decision.