Bank of England shifts to hawkish stance on inflation

The Bank of England is expected to adopt a more hawkish stance this week due to rising price pressures. This marks a shift from recent rate cuts, with expectations for only two more reductions this year. Policymakers are increasingly concerned about inflation, influenced by rising energy and food costs. Recent comments from key officials suggest a move away from previous dovish positions, indicating a cautious approach to future rate cuts. A significant increase in employer payroll taxes is set to take effect in April. Despite this, a survey shows most businesses plan to maintain or grow their workforce, reflecting ongoing demand in the economy.