UK ILO unemployment rate at 5.2 per cent, wage growth at 2.4 per cent

FXStreet (Mumbai) - The UK ILO unemployment rate (3 months) came in at 5.2 per cent as against 5.3 recoded earlier. Wage growth is currently at levels about half of where it was before the crisis. Ben Brettell, senior economist at broker Hargreaves Lansdown had observed “there are signs that wage growth is flattening out”. Wage growth slowed to 2.4 per cent from 3 per cent recorded earlier.

BoE Deputy Governor Minouche Shafik highlighted the need to raise wages and reiterated that the rate cut would happen only when wages rise. Only higher wages can lift consumer spending and help to stabilize price. Michael Sawicki, Senior Economist at Loyds Bank also feels rate hike will happen only when wage growth is deemed satisfactory. Today’s wage growth figures will likely further postpone BoE’s decision to hike rates.