UK employers scale back expected wage growth, Bank of England says

LONDON (Reuters) – British employers expect the wages they pay will grow more slowly over the coming 12 months, according to a survey published by the Bank of England which the central bank will factor into its discussions about when to cut interest rates.

The monthly Decision Makers’ Survey showed expected year-ahead wage growth – which has been too high for the BoE to cut borrowing costs – fell by 0.3 percentage points to 4.2% on a three-month moving-average basis in June.

“Annual wage growth was 6.0% in the three months to June, unchanged from the three months to May,” the BoE said. “Firms therefore expect their wage growth to decline by 1.8 percentage points over the next 12 months based on three-month averages.”

(Writing by William Schomberg, editing by Andy Bruce)


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