BOE Can Take Encouragement From Cooling U.K. Wage Growth -- Market Talk
Dow Jones
May 13, 2025
0900 GMT - The latest U.K. labor-market data showed encouraging sings of cooling pay trends for Bank of England policymakers, Deutsche Bank's Sanjay Raja says in a note. There are clear signs of loosening in the labor market even before the double whammy of a hike in the minimum wage and in employer payroll taxes at the start of April, he says. Annual wage growth excluding bonuses slipped to 5.6% in the three months to March, unemployment edged up and vacancies fell. Pay deals will almost certainly slow further and this should keep the BOE's rate-cutting cycle alive, with an acceleration in rate cuts likely later in the year, he says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
May 13, 2025 05:00 ET (09:00 GMT)
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