Gate News bot news, HSBC analyst Elizabeth Martins said in a report that UK employment data could reverse the situation, favoring a rate cut by the Bank of England in August. Slower wage growth and rising unemployment rates have increased market pricing for this outcome.
Recent policies are likely to send wage growth in the opposite direction: a new payroll tax may reduce wage growth, while an increase in the minimum wage may raise wage growth. The answer seems to be that the Bank of England has been too dovish so far. Even if the May inflation data was weaker than expected, it would not be enough to prompt BoE policymakers to cut interest rates next week.
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The cooling of the UK labor market increases the possibility of the Bank of England cutting interest rates in August.
Gate News bot news, HSBC analyst Elizabeth Martins said in a report that UK employment data could reverse the situation, favoring a rate cut by the Bank of England in August. Slower wage growth and rising unemployment rates have increased market pricing for this outcome.
Recent policies are likely to send wage growth in the opposite direction: a new payroll tax may reduce wage growth, while an increase in the minimum wage may raise wage growth. The answer seems to be that the Bank of England has been too dovish so far. Even if the May inflation data was weaker than expected, it would not be enough to prompt BoE policymakers to cut interest rates next week.
Source: Jinshi