Bloomberg: resilient labor demand may prompt Bank of England to cut rates gradually

The UK recorded the highest wage rise in the last nine months, along with employment growth, Bloomberg reports. This suggests resilient labor demand, which may prompt the Bank of England to take a cautious stance on the future path of interest rates.

UK average wages excluding bonuses jumped 5.9% in the three months through January, according to the Office for National Statistics (ONS). The figure was in line with economists' expectations. However, private-sector pay growth dipped slightly from 6.2% to 6.1%.

Despite a series of tax reforms and an increase in the minimum wage, the number of payrolled employees did not drop, but on the contrary, increased by 21,000 in February. According to the ONS, vacancies rose as well (+1,000 compared to the previous three-month period), while the unemployment rate remained at 4.4%.