UK Wage Growth Again Surprises Markets!
The Bank of England (BOE) remains under pressure to continue raising interest rates due to the continued increase in wage growth in the UK.The latest data released by the Office for National Statistics (ONS) at the start of the European session showed average earnings (excluding bonuses) rose 6.4% in the three months to November compared to a year earlier.According to the ONS, this is the biggest increase recorded since records began in 2001, excluding the increase recorded when Covid hit.Meanwhile, the UK unemployment rate remained at its lowest level since 1974 in November with an increase of 3.7%, broadly in line with market expectations.The figures suggest that the labor market remains too tight for comfort at the central bank, where officials fear inflation will be harder to bring down if wages continue to rise at current rates.Pressure on living standards has sparked strikes in recent months, with workers including nurses, paramedics, bus drivers and civil servants demanding pay rises to keep pace with inflation.The BOE is now expected to raise interest rates for the 10th time in a row early next month.
The Bank of England (BOE) remains under pressure to continue raising interest rates due to the continued increase in wage growth in the UK.
The latest data released by the Office for National Statistics (ONS) at the start of the European session showed average earnings (excluding bonuses) rose 6.4% in the three months to November compared to a year earlier.
According to the ONS, this is the biggest increase recorded since records began in 2001, excluding the increase recorded when Covid hit.
Meanwhile, the UK unemployment rate remained at its lowest level since 1974 in November with an increase of 3.7%, broadly in line with market expectations.
The figures suggest that the labor market remains too tight for comfort at the central bank, where officials fear inflation will be harder to bring down if wages continue to rise at current rates.
Pressure on living standards has sparked strikes in recent months, with workers including nurses, paramedics, bus drivers and civil servants demanding pay rises to keep pace with inflation.
The BOE is now expected to raise interest rates for the 10th time in a row early next month.
