LONDON – The British pound experienced a dip today, influenced by a slower wage growth report and growing expectations that the Bank of England might implement a more dovish monetary policy in the near future. Data released showed that wage growth, excluding bonuses, was at 6.6%, and including bonuses, it stood at 6.5% for the period from September to November. These figures fell short of the market’s anticipated 6.8%.
The employment data also revealed a decrease in job vacancies by approximately 49,000 for October to December, signaling a potential cooling down in the labor market. Despite this, the unemployment rate has held steady at 4.2%. The confluence of these factors is steering analysts to predict a cautious approach from the Bank of England at its upcoming policy meeting in February.
As a result of the weaker-than-expected wage growth and stable unemployment figures, there is now a shift in market expectations, with speculation of interest rate cuts beginning potentially in May.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
