The Bank of England has halved its forecast for average wage growth, saying it now expects average salaries to rise by 1.25% this year.
The forecast comes as official figures showed average wages excluding bonuses grew by 0.6%.
That is the slowest pace of growth since records began in 2001.
However, the Bank upgraded its growth forecast for this year to 3.5% from 3.4%, and for 2015 it forecast growth of 3%, up from 2.9%.
The Bank’s latest quarterly economic forecast also indicated that it believed the level of spare capacity in the UK economy has narrowed to around 1% of GDP.
In February, it said it believed the amount of spare capacity in the economy was within a range of between 1% and 1.5% of GDP.
via BBC 
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