Belfast Telegraph

Bank of England boss says living wage to aid economy

By John-Paul Ford Rojas

Bank of England boss Mark Carney said the introduction of the national living wage would provide a "modest" boost for economic activity as well as inflation.

Mr Carney told MPs on the Treasury Select Committee that policymakers at the Bank were looking at the impact of the initiative, announced in last week's Budget by George Osborne.

The governor said: "In terms of overall economic impact, whether on inflation or activity or productivity, it will modestly move all of those up - modestly but not materially."

Mr Osborne took businesses by surprise when he announced the policy, starting next April, which will see workers aged 25 and above paid a minimum of £7.20 an hour, rising to £9 by 2020.

Business leaders here warned the new wage will "disproportionately impact" Northern Ireland firms.

Belfast Telegraph

Popular

From Belfast Telegraph