2 September 2022 | Other

High inflation has an adverse effect on the UK productivity

Rising inflation in the UK could threaten businesses in making long-term decisions that are necessary for increased productivity, Bank of England representative Katherine Mann said in a podcast. 

Earlier, there were repeated calls to raise the interest rate by half a point. A majority of BoE’s members voted for this decision last month, as inflation hit a record over the past 40 years, reaching 10.1%. 

Labor productivity in the UK lags behind the targets for the U.S, German and French markets. According to Katherine Mann, current inflation rise will force businesses to focus on short-term pricing decisions. 

"High inflation has a lot of negative consequences for the country’s economy," — she said.

“With inflation rising, businesses are trying to find the best pricing strategy. In order to improve productivity, companies should take into account the following factors: producing quality products, making the right investment decisions, and seizing all market opportunities,” noted Katherine Mann.

The BoE will announce a possible rate hike on September 15. It is expected to reach the level of 2.25%.


Company MarketCheese
Gold sell
Period: 22.09.2025 Expectation: 14000 pips
Gold is looming correction after powerful rally
Today at 09:43 AM 110
Period: 26.09.2025 Expectation: 2000 pips
Buying silver while it’s correcting before another rally to $43.5
Today at 08:37 AM 73
Period: 22.09.2025 Expectation: 1200 pips
SPX keeps rising ahead of Fed rate decision
Today at 07:20 AM 120
Brent sell
Period: 30.11.2025 Expectation: 520 pips
Selling Brent with $63.5 per barrel in sight
Today at 06:14 AM 81
Period: 19.09.2025 Expectation: 950 pips
GBPUSD is correcting after testing resistance
12 September 2025 438
Gold buy
Period: 31.12.2025 Expectation: 2400 pips
Buying gold from $3,450 support
12 September 2025 129
Go to forecasts