Saturday, August 8, 2015
Thoughts on this please
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.