UK Wage Growth Slows, Supporting BoE Rate Hold at 5.25%

June labour data shows employment rising 100k and wage growth easing to 4.0%, aligning with Bank of England inflation targets. UK employment rose by 100k in the three months to June, below the 120k consensus, while unemployment dipped to 4.7%. The data suggests a stable bu

June labour data shows employment rising 100k and wage growth easing to 4.0%, aligning with Bank of England inflation targets.

UK employment rose by 100k in the three months to June, below the 120k consensus, while unemployment dipped to 4.7%. The data suggests a stable but subdued labour market, reinforcing expectations for steady monetary policy.

Average weekly earnings growth slowed to 4.0% from 4.3% in May, matching forecasts, as bonus effects faded. Ex-bonus pay held at 3.4%, with private sector wages easing to 2.7%, levels consistent with the BoE’s inflation target.

The figures are likely to reassure the Monetary Policy Committee that wage pressures are contained, supporting a majority vote to keep the Bank Rate unchanged at 5.25%.

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