Saturday, Aug 08, 2015

Thoughts on this please

Thisismoney: Expected wage gains of 2.8% to fuel debate on when to raise interest rates Read more: http://www.thisismoney.co.uk/money/news/article-3190610/Expected-wage-gains-2-8-fuel-debate-base-rate.html#ixzz3iGYWf8cB Follow us: @MailOnline on Twitter | DailyMail on

Wages grew by 2.8 per cent in the second quarter compared with the same period last year as the long-awaited recovery in earnings continued, official figures are expected to show on Wednesday.
The strong wage growth when inflation is zero will fuel the fierce debate over when interest rates should start to rise from their historic lows.
The Bank of England held the base rate steady last week and issued analysis widely seen as making an early rise less likely. But continuing above-inflation pay rises will provide ammunition to those economists calling for rates to head up sooner rather than later.
The Resolution Foundation expects pay to have gone up by between 2.7 and 2.8 per cent, broadly in line with a figure of 2.8 per cent published in May.

Posted by khards @ 11:40 PM (7036 views)
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8 Comments

1. jack c said...

I expect Fed to move first and then BOE to follow, however seeing is believing ! In the space of about one month Mr Carney went from indicating an Autumn 2015 gradual increase tp deferring into mid 2016.

Sunday, August 9, 2015 08:55AM Report Comment
 

2. hpwatcher said...

I expect Fed to move first and then BOE to follow, however seeing is believing ! In the space of about one month Mr Carney went from indicating an Autumn 2015 gradual increase tp deferring into mid 2016.

He's a bullshi**er. Remember his statement on rate rises and unemployment....I think forward guidance what what the fool called it. The whole debate around interest rate rises is a thoroughly moot point, especially with inflation at 0%.

I would question whether it is actually wage growth, as opposed to a drop in inflation. The people who calculate these things love to include all sorts of measurements to get the ''right'' figures. Look to the public sector, rather than government figures, to see whether there really is wage inflation. I say there isn't, I don't know of anyone who has had a significant pay rise in years, and that includes private sector, where wages are literally cut to the bone, and bonuses seem to belong to a bygone age.

Talk tough, to try to keep a lid on the ongoing crisis in bonds/gilts, but do nothing - that's their plan.

Sunday, August 9, 2015 01:38PM Report Comment
 

3. khards said...

I must admit, I haven't seen much wage inflation however 3% in IT would be about right I guess. I know the company I work for are having a big push towards reducing the number of shop and warehouse staff because of the new living wage.
Looks like we will simply spend more automating, then reduce staffing levels to save the money, and in all fairness we can do this but haven't because staff wages have been stagnant.

Sunday, August 9, 2015 09:52PM Report Comment
 

4. hpwatcher said...

I must admit, I haven't seen much wage inflation however 3% in IT would be about right I guess. I know the company I work for are having a big push towards reducing the number of shop and warehouse staff because of the new living wage.

Indeed, the living wage will force more people out of their jobs.

Monday, August 10, 2015 07:03AM Report Comment
 

5. doomwatch said...

2.8%. LOL.

Monday, August 10, 2015 12:03PM Report Comment
 

6. Khards said...

"Indeed, the living wage will force more people out of their jobs."

But won't this look like wage inflation in the figures, even if collectively people are earning less. A bit like house prices levitating on no volume.

Monday, August 10, 2015 01:38PM Report Comment
 

7. khards said...

"Indeed, the living wage will force more people out of their jobs." - However on paper wages will continue to rise, even if the total population are earning less.

Like rising house prices on zero volume.

Monday, August 10, 2015 09:41PM Report Comment
 

8. hpwatcher said...

"Indeed, the living wage will force more people out of their jobs." - However on paper wages will continue to rise, even if the total population are earning less.

Like rising house prices on zero volume.


''I think [devaluation] is what the hippies call it''

Tuesday, August 11, 2015 08:05AM Report Comment
 

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