Bank of Spain governor told to moderate trade margins and not raise wages

The governor of the Bank of Spain, Pablo Hernández de Casas, spoke in Congress this Wednesday to reach an income pact for traders and unions to counter the effects of inflation, assuring that the loss of money in the face of the event “is inevitable”: “the only thing we can do is share it.”

During his appearance before the Economic Affairs Committee and the lower house for digital transformation, in which he is due to report on his 2021 annual report, de Coss has requested “an agreement at the national level”. Moderate business margins and avoid wage increases in line with inflation,

have also asked InvolvedWithin this treaty, Public pension and salary of government employees, thus avoiding its reappraisal according to the CPI. All this, he explained, to avoid indirect and second-round effects, and Don’t add to the spiral whose May rebound stunned the Bank of Spain,

“Today we are poorer than we were before with increasing energy costs. There is a loss, and it is inevitable. The only thing we can do is to distribute it”, continues Hernández de Cos, who has pointed out That if economic agents try to avoid this disadvantage “it will cause an inflationary spiral that will produce even more negative effects”.