BOE Will Want to See Wage Growth Easing Before Further Rate Cuts -- Market Talk
Dow Jones
Mar 20, 2025
1317 GMT - The accompanying minutes to the Bank of England's decision to keep rates at 4.50% on Thursday suggested that pay growth will remain key to future decisions, says Jessica Hinds, director in Fitch Ratings. Wage growth remains elevated, with average earnings excluding bonuses rising 5.9% on year in January. "Committee members will presumably want to see falls in wage growth from current high levels before reducing the restrictiveness of monetary policy," Hinds says. She pencils three further rate cuts this year, including one at the next meeting in May, which will come alongside fresh growth and inflation forecasts. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 20, 2025 09:17 ET (13:17 GMT)
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