UK workers must accept lower pay deals to help beat inflation, says Bank ratesetter

Deputy governor Sarah Breeden also says firms must rein in profits as there is some way to go' to meet 2% inflation target

Victory in the war on inflation will require British workers to accept lower pay deals and companies to rein in their profits, a senior Bank of England policymaker has said.

Sarah Breeden, one of the central bank's four deputy governors, said there was still some way to go" before inflation would fall back to the 2% target set by the government for the Bank to achieve on a sustainable basis.