Bank of England governor Mark Carney has told the UK’s trades unions that wages should start rising in real terms “around the middle of next year” and “accelerate” afterwards.
Addressing the annual conference of the TUC, he said workers “deserved” more money and added that unemployment should fall to 5.5%.
Mr Carney said that interest rates should start rising next Spring
But he insisted there was “no timetable” for future increases.
Mr Carney is only the third Bank of England governor to address the organisation’s annual conference, following Eddie George in 1998 and Mervyn King in 2010.
His speech in Liverpool comes as the economy is recovering, with growth of 0.8% in each of the first two quarters of this year.
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