MPC’s Weale highlights optimism among Yorkshire businesses
THERE’S “broad based optimism” but recruitment is getting harder among North Yorkshire businesses according to Bank of England policymaker Martin Weale.
Martin Weale, the Monetary Policy Committee (MPC) member who for the past two months has been one of two members who have been voting for a 0.25% rise in interest rates, was on a two-day North Yorkshire visit with Juliette Healey, the Bank of England agent for Yorkshire and Humber. He told TheBusinessDesk.com: “I’ve been talking to a range of businesses and there was a general impression that business is doing well.
“Some people were saying things are better, but quieter than in the summer, but others are still rolling full speed ahead – it is a good news story.
“There’s the definite impression they are thinking of offering bigger pay rises next time around than they have done in the past, too. I’m hopeful we will see some movement in people’s pay.”
Although he was unable to say which businesses he had visited, Weale highlighted a house builder and food and cosmetics firm as being “particularly happy”.
Overall, he said there was “broad based optimism” and “a good picture going forward”.
He said the main issue highlighted among the businesses was the fact that recruitment was getting harder. “As the economy recovers, there are more jobs around and people have to work harder to find people or keep people,” he said.
Although Weale has voted for a rise in interest rates for the past two months, he was unable to say what his most recent vote was. Minutes of the Bank’s latest interest rate meeting are published this week and economists expect at least one of the Bank of England’s policymakers who for the past two months voted for a rise, Weale and Ian McCafferty, to have maintained their call for a rate rise.
Speaking about the wider economic picture, Weale, who spoke to around 25 business on the trip, said the biggest headwind facing the economy is the situation on the continent. However he highlighted that the figures released last week which revealed Euro zone GDP had expanded by 0.2%, double the pace of the previous three months, suggested the situation is “not as gloomy as some people had feared”.
On devolution for Northern cities, Weale said he doesn’t really have a view on it as the MPC doesn’t tend to “step outside its brief, on things that are nothing to do with it”. “The public want us to stick to our jobs,” he said.
Looking ahead, Weale said: “I am looking forward to a positive business year in 2015. That’s what the MPC is forecasting, but at the same time, you can never be sure.”
