4.9% UK wage growth at 4% unemployment, job vacancies down, indicating potential interest rate cut.

UK wage growth has slowed to 4.9%, the lowest in over two years, amidst a cooling labor market, with unemployment now at 4%. Job vacancies decreased to 841,000, the lowest since early 2021. These trends suggest the Bank of England may cut interest rates from 5% to 4.75% in November. Despite this, wage growth still exceeds inflation, creating a complex economic landscape as officials anticipate the upcoming budget.

October 15, 2024
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