UK Pay Growth Data Could Influence Bank of England Rate Hike Decisions
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The Office for National Statistics reported that average weekly earnings, excluding bonuses, increased by 3.7% in the three months to August compared to the same period in 2025, up from 3.4% earlier this year. Pay growth in the private sector rose to 3.0%. Additionally, a preliminary measure of payrolled employees increased by 13,000 in September.
From 933thedrive.com
Why it matters
The figures suggest the labor market shows some resilience, which could support the Bank of England's case for an interest rate hike. However, senior economist Jack Kennedy noted that a stronger economic turnaround depends on the first budget presented by John Healey.
From 933thedrive.com
Who's involved
- Office for National StatisticsProvides official economic statistics on wages and employment.
- Bank of EnglandUses economic statistics to inform monetary policy and rate-setting.
- John HealeyHis upcoming budget is cited as a factor determining the strength of the economic turnaround.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Lloyds Banking GroupSpeculative
Could face increased lending risk and costs due to potential Bank of England rate hikes.
- BarclaysSpeculative
Could face increased lending risk and costs due to potential Bank of England rate hikes.
- Confederation of British IndustrySpeculative
Might see slower investment and higher borrowing costs if the Bank of England raises rates.
- governmentSpeculative
May face constraints on fiscal policy options if the Bank of England raises interest rates.
Keep exploring
The entities involved
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Office for National Statistics
United Kingdom's principal government institution in charge of statistics and census data
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Bank of England
central bank of the United Kingdom
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John Healey
British politician (born 1960)