Business

UK wage growth jumps

UK wage growth accelerated more than expected, official data showed Tuesday, cementing analyst forecasts that the Bank of England will avoid cutting interest rates this week.

Annual growth in employees' average regular earnings rose to 5.2 percent in the three months to the end of October, up from 4.9 percent in the same period to September, the Office for National Statistics said in a statement.

The ONS added that the unemployment rate stayed at 4.3 percent to the end of October, which came in line with expectations.

The growth in wages, which had been slowing steadily for over a year, reflected a "stronger growth in private sector pay", according to ONS director of economic statistics Liz McKeown.

Analysts have maintained expectations that the Bank of England will keep its main interest rate unchanged at its meeting on Thursday, as inflation stands above the BoE's two percent target.

"Rising wage inflation is a matter for concern, because there's a risk it means businesses raise prices to cover wage costs, and inflation becomes embedded in the economy again," said Sarah Coles, head of personal finance at Hargreaves Lansdown.

"Anyone wondering whether we might get another interest rate cut this week can now be fairly confident it's going to be off the table entirely in December," she added.

Last month, the central bank trimmed borrowing costs by 25 basis points to 4.75 percent.

That came after the BoE reduced it key rate in August for the first time since early 2020, from a 16-year high of 5.25 percent as UK inflation returned to normal levels.

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UK wage growth jumps

UK wage growth accelerated more than expected, official data showed Tuesday, cementing analyst forecasts that the Bank of England will avoid cutting interest rates this week.

Annual growth in employees' average regular earnings rose to 5.2 percent in the three months to the end of October, up from 4.9 percent in the same period to September, the Office for National Statistics said in a statement.

The ONS added that the unemployment rate stayed at 4.3 percent to the end of October, which came in line with expectations.

The growth in wages, which had been slowing steadily for over a year, reflected a "stronger growth in private sector pay", according to ONS director of economic statistics Liz McKeown.

Analysts have maintained expectations that the Bank of England will keep its main interest rate unchanged at its meeting on Thursday, as inflation stands above the BoE's two percent target.

"Rising wage inflation is a matter for concern, because there's a risk it means businesses raise prices to cover wage costs, and inflation becomes embedded in the economy again," said Sarah Coles, head of personal finance at Hargreaves Lansdown.

"Anyone wondering whether we might get another interest rate cut this week can now be fairly confident it's going to be off the table entirely in December," she added.

Last month, the central bank trimmed borrowing costs by 25 basis points to 4.75 percent.

That came after the BoE reduced it key rate in August for the first time since early 2020, from a 16-year high of 5.25 percent as UK inflation returned to normal levels.

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