© Reuters. Forex — Sterling is lower than the wage growth data and rate hike bets dims
Investing.com — The pound slipped lower against the dollar on Wednesday after the latest UK labour market report showed that wage growth still lags behind inflation, tempering expectations for a rate hike by the Bank of England.
GBP/USD was GMT, down 0.25% at 1.3155 05:22 PM ET (09:22 PM) from the entire 1.3182 before the data.
The office for National statistics average earnings said, including bonuses, rose by an annual 2.2% in the three months to August. Excluding bonuses, earnings rose by 2.1%.
Wage growth has steadily fallen behind inflation rose from 3% in September, the highest level in more than five years.
The increase in the cost of living, driven largely by the decline in the pound since last year, is a British EU exit vote, has led to pressure on the expenditure of households.
The report also showed that the UK unemployment rate held steady at 4.3% in the three months to August, the lowest level in 42 years.
Despite the slowdown in the UK economy so far this year, the BoE has signaled that he expects the interest rates, the price pressure will increase in the coming months, as long as more and the growth continues.
Some market observers believe the bank is interest rate steps form your current record cost low of 0.25% to 0.5% at its next meeting in November, which was the first increase in foreign capital in almost a decade.
But the expectations for an interest rate increase reduces quiet following comments from the Central Bank’s policy on Tuesday.
The BoE said the new Deputy Governor that he does not support the view that interest rates are likely to rise quickly, and another official said their support for a rate increase was «very dependent on the data».
Sterling was a touch lower against the euro, with EUR/GBP at 0.8927 around 0.8919 earlier.
In the euro zone, the European Central Bank President Mario Draghi said on Wednesday that the political leaders have adopted a «window of opportunity» to reforms to promote growth, thanks to the euro-zone to the current record low interest rates.