Bank of England rate hike on the cards?
UK workers’ overall pay rose at the fastest pace in more than two years during the three months to January.
According to Office for National Statistics, the basic pay has risen by 2.6 per year in the three months to January, up from 2.5 per cent in the three months to December 2017.
— ONS (@ONS) March 21, 2018
If you include bonuses, then earnings jumped by 2.8 per cent— the biggest jump since September 2015— after an upwardly revised 2.7 percent rise in the three months to December.
The expected increase in pay growth is a prime reason why the Bank of England said last month that it expected interest rates to rise faster. The BoE is expected to keep rates on hold when it announces the outcome of its March policy meeting tomorrow, according to media reports.
Meanwhile, the unemployment rate ticked lower to 4.3 per cent from 4.4 per cent.