UK Pay Growth Slows, BoE Expected to Maintain High Rates

UK wage growth slowed in the three months to October, with earnings excluding bonuses rising by 7.3% compared to a year earlier, down from 7.8% in the previous quarter. Despite the slowdown, pay is still rising too fast for the Bank of England to consider cutting interest rates. The central bank is expected to maintain its tough stance on rates at its December meeting. The slowdown in wage growth, along with other signs of cooling inflationary pressure, suggests that wage pressure may be easing. However, annual pay growth is still running at more than twice the pace consistent with the Bank of England's 2% inflation target.