Britain’s unemployment rate and wage growth slowed, according to official data released on Tuesday, reinforcing analyst predictions that the Bank of England (BoE) is likely to reduce interest rates next month.
The unemployment rate fell to 4.0 percent from 4.1 percent in the three months leading up to August, compared to the three months ending in July, the Office for National Statistics (ONS) announced.
Additionally, the ONS reported that annual growth in average regular earnings for employees decreased to 4.9 percent during the period, marking the lowest level in over two years.
This data “further supports the broad expectations that the Bank of England will lower interest rates from 5.0 percent to 4.75 percent at its upcoming policy meeting in November,” stated Ashley Webb, UK economist at Capital Economics.
In its previous meeting in September, the Bank of England paused after consecutive rate cuts. Earlier in August, the bank reduced its key interest rate from a 16-year high of 5.25 percent, marking the first cut since early 2020, as inflation stabilized.
On Wednesday, the ONS is expected to release Britain’s latest inflation figures, with the annual rate anticipated to drop below the Bank of England’s 2.0 percent target.
