By Joshua Kirby
U.K. wages rose at a slower pace in September, opening the way for further rate cuts from the Bank of England.
Average U.K. weekly earnings, not including bonuses, were 4.8% higher on year over the three months to September, slowing from a 4.9% rise in the previous period. That was a little above the expectations of economists polled by The Wall Street Journal, but still represents the slowest rate of increase since the second quarter of June 2022, the Office for National Statistics said Tuesday. The unemployment rate rose to 4.3% over the period, adding to signs of loosening in the U.K. jobs market.
The BOE last week lowered its key interest rate for a second time, and said more cuts were likely if inflation shows signs of settling at its target. The bank nevertheless stressed that those moves are likely to be gradual in the face of uncertainties about the outlook for the world economy as Donald Trump prepares for his second presidency, and the impact of the new U.K. government's budget plans.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
11-12-24 0225ET
