Wages in the U.K. may soon start to pick up, but any quickening in pay growth could be held back by weak productivity growth and an expanding workforce, according to one of the Bank of England’s top officials.
Ben Broadbent, the BOE’s deputy governor for monetary policy, said in remarks prepared for delivery Saturday at the Federal Reserve Bank of Kansas’ annual conference in Jackson Hole, Wyo., that survey data and skills shortages in the U.K. indicate wage growth may soon begin to rise.
His speech suggests he sees no great hurry to raise U.K. interest rates, assuming inflationary pressures remain subdued. He didn’t discuss the outlook for monetary policy in detail.
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