Dec 17 2024: British wages grew more than anticipated in the three months to October, according to official data released on Tuesday, potentially complicating the Bank of England’s decision on how quickly to lower interest rates.
The Office for National Statistics reported that average weekly earnings, excluding bonuses, increased by 5.2% compared to the same period last year. This surpassed economists’ expectations, with a Reuters poll forecasting a 5.0% rise.
Private sector wages, excluding bonuses, grew by 5.4% during the August-to-October period, marking the fastest pace of growth since May.
The stronger-than-expected wage data prompted a sharp reaction in currency markets, with sterling climbing by roughly a third of a cent against the U.S. dollar immediately after the release.
