BOE’s Bailey Says UK Faces Challenge To Raise Potential Growth
Andrew Bailey, right, walks with Fed Chair Jerome Powell, from left, Bank of Japan Governor Kazuo Ueda and ECB President Christine Lagarde outside the Fed’s Jackson Hole Economic Policy Symposium on Aug. 22.
Photographer: David Paul Morris/BloombergBritain faces an “acute challenge” to raise its underlying rate of economic growth as long as participation in the workforce remains weak, Bank of England Governor Andrew Bailey said.
Bailey told central bankers at the Federal Reserve’s Jackson Hole gathering in Wyoming that Britain’s labor market problem was no longer unemployment, but participation. Unless more Britons rejoin the workforce, there will have to be “much more emphasis on productivity growth” to boost the economy.