Typical UK wages rise 5.7% in three months, according to Investing.com

In the UK, regular wages, excluding bonuses, rose by a remarkable 5.7% in the three months to the end of May compared with the same period a year earlier. The move is crucial for the Bank of England as it assesses the timing of an interest rate adjustment.

The wage hike is in line with the forecasts of most economists surveyed on the matter. The Bank of England (BoE) is set to announce its next interest rate decision in two weeks.

Following the release of unexpectedly high inflation figures on Wednesday, the probability of an interest rate cut on August 1, the first since 2020, is now seen by investors as one in three.

Data on wage growth is an important component for the BoE as it provides information on inflationary pressures in the economy, a key factor in the central bank’s decision-making process regarding monetary policy. The upcoming tariff announcement is highly anticipated in light of recent economic indicators.

Reuters contributed to this article.

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