UK wage growth weak but likely to keep BoE on track for rate hike

British pay growth has lagged behind inflation again, official data showed on Wednesday, but the figures are likely to cement expectations among investors that the Bank of England will soon raise interest rates for the first time in a decade.The data also showed the unemployment rate between June and August held at its 42-year low of 4.3 percent, one of the reasons why the BoE thinks pay is likely to pick up soon.Despite a slowdown in Britain’s economy this year, the central bank is widely expected to increase rates to 0.50 percent from an all-time low of 0.25 percent on Nov. 2, at the end of its next meeting.

Source: UK wage growth weak but likely to keep BoE on track for rate hike – Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.