UK Wage Growth at Two-Year Low Keeps BOE Rate Cut in Sight
- Average earnings ex-bonuses fell below 5% over the summer
- Markets are all-but pricing in a rate reduction in November
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UK wages grew at the slowest pace in more than two years over the summer, a sign of easing inflationary pressures that keeps the Bank of England on track to cut interest rates in November.
Average earnings excluding bonuses rose 4.9% in the three months through August from a year earlier, the Office for National Statistics said Tuesday. It was smallest increase since the second quarter of 2022 and in line with the median forecast of economists. Private-sector wage growth slowed to 4.8% from 5%.