Weak #UK Wages May Not Be Enough to Foil #BOE Tightening: CapEco - TopicsExpress



          

Weak #UK Wages May Not Be Enough to Foil #BOE Tightening: CapEco #forex #gbpusd Extremely weak wage growth alone might not be enough to prevent MPC from signaling in Inflation Report today a strong chance of interest rates rising before year end, Samuel Tombs, economist at Capital Economics, writes in client note. • Weak wage growth suggests there is still large margin in spare capacity in labor market • Expect continued weakness in U.K. wages to ensure BOE interest rates rise very gradually over next year • Weakness in June was partly a result of unusually high bonuses in April and May 2013 • NOTE: U.K. June avg weekly earnings 3-mo. y/y drop 0.2% vs est. -0.1% (revised prior +0.4%)
Posted on: Wed, 13 Aug 2014 09:11:01 +0000

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