1528 GMT - U.K. pay growth is likely to fall considerably, raising the likelihood of an interest-rate cut in May, Morgan Stanley analysts say in a note. Markets currently price in a 47% chance of a May rate cut after the BOE left interest rates on hold in a decision Thursday, LSEG data show. Most members of the BOE's monetary policy committee probably consider that interest rates are restrictive given that the meeting minutes "noted weakness in rate-sensitive sectors of the economy," Morgan Stanley says. "We assume that barring major upside surprises in the pay and inflation data, rates will be cut in May again." (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

March 20, 2025 11:28 ET (15:28 GMT)

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