Even though the rise in pay growth in September will probably be followed by a bigger gain in October, as the new 5-6% public sector pay deals start, the easing in private sector regular pay growth suggests that the Bank of England will continue to cut interest rates gradually. We continue to think the Bank will skip the December meeting and will next cut interest rates, from 4.75% to 4.50%, at the following meeting in February.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services