According to Jinshi Data, Matthew Ryan, head of market strategy at Ebury, said that wage growth in the UK private sector was strong, with the average salary of ordinary employees increasing by 5.2% in the three months ending October.
The Bank of England, concerned about inflation fueled by rising wages, is expected to keep interest rates unchanged at its meeting this week and stress the need for gradual monetary easing through 2025. That could cast doubt on a rate cut in February.
