- Average weekly wage growth in the UK rose by 5.1% in the three months to July, marking the slowest growth in over two years.
- The UK economy added 265,000 new jobs, exceeding expectations.
- The Bank of England (BoE) is likely to consider cutting interest rates before the end of the year.
London, September 10 (FinanceFlashNews.com) – UK wage growth slowed to its weakest pace in over two years for the three months leading up to July, which could prompt the Bank of England (BoE) to lower interest rates again before the end of the year. According to the Office for National Statistics (ONS), average weekly wages excluding bonuses rose by 5.1%, the slowest increase since June 2022.
Stronger Job Market
Despite the slowdown in wage growth, the UK economy continued to perform strongly in the job market, adding 265,000 jobs during the same period, significantly above the 123,000 predicted by economists. The unemployment rate dipped slightly to 4.1%, down from 4.2% in the previous quarter.
Outlook on Interest Rates
The Bank of England reduced interest rates in early August after keeping them at a 16-year high of 5.25% for nearly a year. BoE is expected to keep a close watch on private sector wage growth, which slowed to 4.9%, aligning with the bank’s forecast of 4.8% for the third quarter. Investors are currently predicting a one-in-four chance of a further rate cut in September.
Keywords: UK, Bank of England, wage growth, unemployment, interest rates, private sector wages
