UK employment data may prompt the Central Bank of the UK to cut interest rates in August as the slowdown in wage rise has attracted market follow.

BlockchainPioneer2025 · 2025-06-10T18:49:36+00:00

HSBC analyst Elizabeth Martins pointed out that UK employment data could drive a rate cut in August, but slowing wage growth and rising unemployment rates increase market expectations for this outcome. Current policies may lead to varying wage changes, and the Bank of England's dovish stance remains unchanged.

BlockchainPioneer2025

2025-06-10 18:49:36

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Elizabeth Martins, an analyst at HSBC, said in a note that UK jobs data could turn things around, favoring the Bank of England to cut interest rates in August. Slowing wage growth and rising unemployment have raised market pricing in such an outcome. Recent policies are likely to send wage growth in the opposite direction: a new payroll tax may reduce wage growth, while an increase in the minimum wage may raise wage growth. The answer seems to be that the Bank of England has been too dovish so far. Even if the May inflation data is weaker-than-expected, it won’t be enough to prompt BoE policymakers to cut interest rates next week.

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