JP Morgan AM: Wage gains pose a tricky dilemma for the BoE
JP Morgan AM: Wage gains pose a tricky dilemma for the BoE
Last week's UK jobs report showed regular wages accelerating once again, to 6.7% year on year in the three months to March. Continued wage momentum could provide a tailwind to the UK economy.
Although around 1.4 million households in the UK will feel a significant pinch as they refinance their mortgages this year, wage gains for those whose mortgages are not up for renewal could provide some offset for the economy as a whole. As such, the Bank of England (BoE) is in a tricky position, with it unclear whether it should keep raising rates or wait to see the effect of its prior hikes. Given the strength of wage gains, the BoE might decide to raise rates further and is unlikely to start cutting before a recession hits.
Share this post!
Related posts
-
Read more about "abrdn: Response to UK jobs report"abrdn: Response to UK jobs report
-
Read more about "Payden & Rygel: Core inflation and unemployment in 2024 vs 2025 outlook"Payden & Rygel: Core inflation and unemployment in 2024 vs 2025 outlook
-
Read more about "Nyenrode: Familiebedrijven investeren in bestrijden krappe arbeidsmarkt"Nyenrode: Familiebedrijven investeren in bestrijden krappe arbeidsmarkt
-
Read more about "Casper de Vries: Banken moeten meer concurrentie krijgen"Casper de Vries: Banken moeten meer concurrentie krijgen
-
Read more about "Payden & Rygel: UK Services Inflation Rates"Payden & Rygel: UK Services Inflation Rates
-
Read more about "abrdn: BoE interest rate outlook cloudier from now on"abrdn: BoE interest rate outlook cloudier from now on
-
Read more about "Saxo Bank: Bank of England zal na renteverlaging voorzichtige toon aanslaan"Saxo Bank: Bank of England zal na renteverlaging voorzichtige toon aanslaan
-
Read more about "Principal AM: Door ruis arbeidsmarkt heen kijken"
Principal AM: Door ruis arbeidsmarkt heen kijken
-
Read more about "abrdn: Beware of bullish outlook for the pound"abrdn: Beware of bullish outlook for the pound
-
Read more about "Payden & Rygel: Initial jobless claims"Payden & Rygel: Initial jobless claims