Overview

• The Bank of England kept its benchmark rate at 4.5% after Governor Andrew Bailey warned that ONS job and wage figures carry a "very severe health warning".
• ONS labour market surveys have struggled with low response rates and smaller sample sizes since the pandemic, raising doubts about their accuracy.
• Deputy Governor Sarah Breeden said the Bank is using HM Revenue and Customs data to fill gaps, though it excludes self-employed workers.
• Analysts warn that delayed rate cuts driven by data uncertainty could cost around 8.4 million mortgage holders, especially the 1.1 million on variable rates, hundreds of pounds annually.
• The ONS admitted a recent inflation miscalculation and describes its improvement efforts as a work in progress amid an ongoing methodology overhaul.