Bank of England governor urges workers to limit pay rise demands to help others without ‘bargaining power’

The governor of the Bank of England has urged workers to limit their demands for a pay rise this year warning of the impact of high inflation on those who don’t have ‘bargaining power’.

Andrew Bailey said the problem was one “we all have to be very conscious of" hours after he warned households will suffer the deepest fall in living standards on record as the UK plunges into a yearlong recession this autumn.

He also rejected criticism from allies of Liz Truss, the frontrunner to become prime minister, that the bank should have raised interest rates earlier, warning that could have tanked the economy.