Bank of England chief economist warns inflation could top 5%

Published

4 years ago

October 21, 2021

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Inflation could top 5% in the months ahead, the Bank of England’s new chief economist has warned.

The remarks by Huw Pill in an interview with the Financial Times are likely to be seized upon as the latest evidence of Britain’s cost-of-living crisis.

Mr Pill also told the FT that the Bank would face a “live” decision on whether to raise interest rates at its rate-setting meeting next month though he declined to say which way he would cast his vote.

That follows recent remarks by Mr Pill’s boss, BoE governor Andrew Bailey, that the Bank may “have to act” over inflation – comments which prompted markets to price in a 90% chance of a rate hike in November.

The Bank rate is currently at the historic low of 0.1% after being slashed in the early stages of the coronavirus crisis.

Inflation has turned higher in recent months as supply chains struggle to keep up with the resumption of demand following pandemic lockdowns.

Though latest official figures showed the rate of price increases slipping back slightly to 3.1% in September, underlying pressures – also including labour shortages and spiking energy prices – look set to persist.

The Bank of England has previously said that it expects the CPI measure of inflation to climb above 4% by the end of the year.

Mr Pill told the FT: “I would not be shocked – let’s put it that way – if we see an inflation print close to or above 5% [in the months ahead].”

He said it was a “very uncomfortable place” for a central bank with an inflation target of 2% – despite his view that inflation was likely to come down again in the second half of next year.

However he urged caution over the exact timing of a rate hike – traditionally seen as a tool for central bankers to try to tame inflation – telling the FT that “maybe there’s a bit too much excitement in the focus on rates right now”.

Mr Pill’s latest remarks come after he warned recently that the “magnitude and duration” of the recent upturn in inflation was proving greater than expected.

Business

Pizza Hut to shut 68 restaurants in UK after company behind venues falls into administration

Published

3 hours ago

October 20, 2025

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Pizza Hut is to close 68 restaurants and 11 delivery sites with the loss of more than 1,200 jobs after the company behind its UK venues fell into administration.

The company has said 1,210 workers are being made redundant as part of the closures.

DC London Pie, the firm running Pizza Hut’s restaurants in the UK, appointed administrators from corporate finance firm FTI on Monday.

It comes less than a year after the business bought the chain’s restaurants from insolvency.

On Monday, American hospitality giant Yum! Brands, which owns the global Pizza Hut business, said it had bought the UK restaurant operation in a pre-pack administration deal – a rescue deal that will save 64 sites and secure the future of 1,276 workers.

A spokesperson for Pizza Hut UK confirmed the Yum! deal and said as a result it was “pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.

“Approximately 2,259 team members will transfer to the new Yum! equity business under UK TUPE legislation, including above-restaurant leaders and support teams.”

Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada, called Monday’s agreement a “targeted acquisition” which, he said, “aims to safeguard our guest experience and protect jobs where possible.

“Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”

The administration came after HMRC filed a winding up petition on Friday against DC London Pie.

DC London Pie was the company formed after Directional Capital, which operated franchises in Sweden and Denmark, snapped up 139 UK restaurants from the previous UK franchisee Heart with Smart Limited in January of this year.

Business

Bank of England job fears as Andrew Bailey warns of tough choices

Published

8 hours ago

October 20, 2025

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Bank of England job fears as Andrew Bailey warns of tough choices

Staff at the Bank of England are on alert for potential job cuts in Threadneedle Street after the governor, Andrew Bailey, warned of tough decisions about the institution’s future cost base.

Sky News has learnt that Mr Bailey informed Bank of England employees in a memo last week that it was taking a detailed look at costs, although it did not specifically refer to the prospect of redundancies.

One source said the memo had been sent while Mr Bailey was attending the International Monetary Fund (IMF) meeting in Washington.

Its precise wording was unclear on Monday, but one source said it had warned of “tough choices” that would need to be made as the bank accelerated its investment in new technology.

They added that managers had been briefed to expect to have to make savings of between 6% and 8% of their operating budgets.

The Bank of England employed 5,810 people at the end of February, of whom just over 5,000 were full-time, according to its annual report.

Those numbers were marginally higher than in the previous year.

The central bank’s budget, funded through a levy, is expected to be £596m in the current financial year.

The workforce figures include the Prudential Regulation Authority, Britain’s main banking regulator, which is set to get a new boss next year when Sam Woods steps down after two terms in the role.

A Bank of England spokesperson declined to comment on the contents of Mr Bailey’s memo.

They also declined to provide details of the timing of any previous rounds of redundancies at the bank.

Business

Pizza Hut to shut 68 restaurants in UK after company behind venues falls into administration

Published

10 hours ago

October 20, 2025

admin

Pizza Hut is to close 68 restaurants and 11 delivery sites with the loss of more than 1,200 jobs after the company behind its UK venues fell into administration.

The company has said 1,210 workers are being made redundant as part of the closures.

DC London Pie, the firm running Pizza Hut’s restaurants in the UK, appointed administrators from corporate finance firm FTI on Monday.

It comes less than a year after the business bought the chain’s restaurants from insolvency.

“Approximately 2,259 team members will transfer to the new Yum! equity business under UK TUPE legislation, including above-restaurant leaders and support teams.”

“Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”

The administration comes around six weeks after a subsidiary of Yum! filed a winding up petition against DC London Pie.

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