The Bank of England has caused a stir after paying bonuses to its own staff at a time when it is calling for pay restraints to fight inflation.
A total of £25mln was paid last year in staff bonuses, with some employees receiving up to £22,5000 in addition to their base salaries.
Governor Andrew Bailey, who has been leading calls for pay restraint, is paid just under £500,000 a year, while the annual pay at the BoE is roughly £62,000.
“For this year, the Bank has given a 3.5% pay award to its staff. There is no question of the Bank unduly rewarding its staff,” the bank said.
The campaign to tame inflation means mortgage holders have faced steep rises in repayments, roughly £200 a month by the end of this year.
Inflation is expected to remain at elevated levels in the UK, where tomorrow’s reading of the Consumer Price Index is set to stay above 8%. Its equivalent in the US fell to 3% last week. The BOE’s target for inflation, set by the government, is 2%.