Britain’s unemployment rate and wage growth have eased, official data showed Tuesday, cementing analyst expectations that the Bank of England will resume cutting interest rates next month.
According to a statement from the Office for National Statistics, the unemployment rate fell to 4.0 per cent from 4.1 per cent in the three months to the end of August compared with the three months to the end of July.
The ONS added that annual growth in employees’ average regular earnings dropped to 4.9 per cent in the reporting period, the lowest level in more than two years,
The report “adds further support to widespread expectations that the Bank of England will cut interest rates from 5.0 per cent to 4.75 per cent at the next policy meeting in November”, noted Ashley Webb, UK economist at Capital Economics research group.
At its last policy meeting in September, the BoE decided against consecutive cuts to borrowing costs.
In August, it reduced its key rate for the first time since early 2020, from a 16-year high of 5.25 per cent as inflation returned to normal levels.
The ONS will Wednesday present Britain’s latest inflation reading, with the annual level expected to have fallen to below the Bank of England’s target rate of 2.0 per cent.
