UK Pay Growth Declines to Lowest in Over Five Years
Pay growth in the UK has dropped to its lowest level in more than five years, according to the most recent official data. The Office for National Statistics (ONS) reported that annual earnings, excluding bonuses, increased by 3.8% during the November to January period.
Unemployment Rate and Job Vacancies
The ONS figures also indicated that the unemployment rate remained steady at 5.2%. Regarding job vacancies, the number was described as "largely stable," with decreases in openings at smaller companies being balanced by increases at larger firms.
Context Ahead of Bank of England Interest Rate Decision
These statistics were released ahead of the Bank of England's upcoming decision on interest rates, which is anticipated to maintain the current borrowing cost. Prior to the outbreak of the US-Israeli conflict with Iran, there was speculation that the Bank might reduce rates. However, this is now considered unlikely due to the recent conflict causing a rise in fuel prices and some energy costs.
