UK wages growth slips, as Bank of England governor warns on no deal Brexit – business live

Here’s our story on the day’s UK data:

The rate of pay growth for British workers has fallen to the lowest level in six months, despite record numbers of people in work across the country, official figures show.

Heaping renewed pressure on the Bank of England to delay raising interest rates from as early as August, the latest snapshot for the British labour market showed workers are still unable to demand higher pay despite the lowest unemployment levels since the mid-1970s. High rates of employment and low levels of unemployment usually signal rising wages.

The Office for National Statistics said average weekly earnings rose by 2.5% on the year in the three months to May, slowing down from the previous three months when they grew by 2.6%. Pay growth excluding bonuses also slowed by a similar amount to 2.7%.

There have been signs of recovery in the British economy that could tempt the Bank to raise interest rates from as early as next month to counter persistently high levels of inflation since the EU referendum two years ago. Having shuddered to a standstill during the freezing weather earlier this year, the economy rebounded in May thanks to warmer weather and the royal wedding. The Bank has previously said it would raise rates should the economy continue to improve.

The full report is here:

https://www.theguardian.com/uk-news/rss