LONDON – The British pound experienced a dip today, influenced by a slower wage growth report and growing expectations that the Bank of England might implement a more dovish monetary policy in the near future. Data released showed that wage growth, excluding bonuses, was at 6.6%, and including bonuses, it stood at 6.5% for the period from September to November. These figures fell short of the market’s anticipated 6.8%.
The employment data also revealed a decrease in job vacancies by approximately 49,000 for October to December, signaling a potential cooling down in the labor market. Despite this, the unemployment rate has held steady at 4.2%. The confluence of these factors is steering analysts to predict a cautious approach from the Bank of England at its upcoming policy meeting in February.
As a result of the weaker-than-expected wage growth and stable unemployment figures, there is now a shift in market expectations, with speculation of interest rate cuts beginning potentially in May.
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