Reported about 1 year ago
Despite overall inflation in the UK cooling down to near the 2% target, a recent employment report shows that wage growth continues to surge, causing concerns for the Bank of England (BOE) scheduled to meet next week, potentially delaying a rate cut. The Office for National Statistics (ONS) revealed a 6% increase in average earnings (excluding bonuses) from February to April, slightly below economists' predicted 6.1% rise. While April's inflation rate slowed to 2.3%, inflation in the labor-intensive service sector remains high at 5.9%. Due to worries that excluding energy prices the overall inflation could rise, including rapid wage growth, the BOE is expected to keep the benchmark interest rate frozen at a 16-year high during its monetary policy meeting on June 20th, with speculation of a possible rate cut in August to address the first decrease since March 2020.
Source: YAHOO