Labour market to tighten in coming months, BoE´s Shafik says

The labour market will start to tighten in coming months, a top Bank of England official said on Friday.

"We are over time seeing a situation where there are recruitment difficulties in many parts of the country, employers are having to bid up wages," Minouche Shafik, the Bank of England´s Deputy Governor told BBC Radio.

"I do think that the labour market will start to tighten over the coming months," she said.

The BoE should not deploy interest rates to brake the housing market, relying instead on its ability to curb lending for instance, she added.