UK wage growth slows – will interest rates fall?

UK wage growth slows – will interest rates fall?

UK wage growth slowed in the three months to July, as payroll employment and hiring weakened, official data on Tuesday showed. Annual earnings growth, excluding bonuses, declined to 5.1 per cent, down from 5.4 per cent in the three months to May, the Office for National Statistics said. The figure was in line with analysts’ expectations.

This means pensions will rise much faster than working-age benefits, which are uprated by consumer price inflation in September and may lead to an interest rate drop in the next quarter.