🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

UK wage growth holds at 6%, may delay Bank of England rate cuts, ING predicts

EditorEmilio Ghigini
Published 16/04/2024, 08:18 pm
FTSE
-

On Tuesday, economists from ING provided insights into the current state of the UK's wage growth and its implications for the Bank of England's monetary policy. According to their analysis, wage growth is "temporarily stuck in the 6% area," which may influence the central bank's decision to postpone interest rate cuts until August. This assessment comes despite indications of a cooling jobs market.

The latest UK jobs report presents a complex picture, with an unexpected jump in private sector pay drawing attention. Regular pay, excluding bonuses, saw a significant 12% increase on a month-on-month annualized basis.

However, ING economists caution that one month's data is not indicative of a trend. When averaging the past three months and comparing it to the same period from the previous year, private sector wage growth has marginally decreased to 6.0%.

The Bank of England has previously indicated that it considers month-on-month changes in pay when making policy decisions. Although the recent surge in wages may not establish a trend, it is expected that the central bank's policymakers will closely monitor upcoming data to determine if this level of monthly growth persists. The next set of employment data will be particularly scrutinized to assess whether the current wage growth rate continues.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.