UK Wage Growth Slows, Boosting Prospects for Interest Rate Cut
The Bank of England is expected to reduce rates in November as wage growth hits a two-year low, signaling easing inflation pressures.
- Wage growth in the UK has decreased to 4.9% in the three months to August, marking the lowest increase since mid-2022.
- Economists widely anticipate a Bank of England interest rate cut from 5% to 4.75% in November due to the slowdown in wage growth.
- The labor market shows signs of weakening, with job vacancies dropping by 34,000 to 841,000, the lowest since early 2021.
- Despite the falling unemployment rate, the Office for National Statistics advises caution with these figures due to survey response issues.
- Pay growth still outpaces inflation, with wages rising by 2.6% when adjusted for the Consumer Prices Index.
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