UK Wage Growth Picks Up and Jobless Rate Falls Before BoE Meeting
UK weekly earnings growth rose to 3.7% and unemployment fell to 4.7%, raising odds of a Bank of England rate hike next month.
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what happened
Annual weekly earnings growth excluding bonuses rose to 3.7% in the three months through August, up from an upwardly revised 3.6% in the three months through July, the Office for National Statistics said. Economists polled by The Wall Street Journal had expected 3.6%.
Unemployment unexpectedly fell to 4.7% in June-August from 4.9% in May-July, its lowest level since July last year. Economists had expected no change. Vacancies, however, dropped by the largest amount since the start of the year.
The pound gained against the dollar after the release. Investors expect the Bank of England to lift its key rate to 4.0% early next month.
why it matters
The data strengthen the case for tighter monetary policy. Economists say the labor market is not weak enough to bring inflation under control quickly, though private-sector pay growth of 3.0% still trails inflation, which suggests limited wage pressure for now.
market impact
Pound and gilts: stronger odds of a BoE hike support GBP and put pressure on longer-dated bonds
tags
instruments
sources
- U.K. Wage Growth Picks Up, Jobless Rate Falls Ahead of Bank of England Meeting — 2nd Update — Dow Jones Newswires, 20 October 2026 at 07:23 UTC
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