Bank of England governor Mervyn King has praised staff at the institution for coping so well with pay freezes.
Employees have faced two years without any increase in their salaries, while they also took on additional work from the Financial Services Authority (FSA).
The freeze is due to end next March, with Mr King set to step down from his post in June 2013.
In the foreword to the bank's annual report yesterday (2 July), which was reported in Bloomberg, Mr King stated: "We recognize that only by retaining and nurturing the most talented among bank staff and those staff transferring from the FSA can we hope to fulfil our responsibilities, new and old."
He added a range of measures, such as offering dry cleaning and limiting canteen food prices, are being implemented to compensate workers.
The report identified keeping key members of staff as one of the biggest challenges facing the Bank.
Posted by Claire Archer