London
Wages still rising: Pay in Britain increased more than expected in the first quarter of the year despite a cooling labour market, raising doubts over when the Bank of England will cut interest rates for the first time in four years. Annual regular wage growth, including bonuses, held steady at 5.7% in the three months ending March, according to the Office for National Statistics. This was ahead of City analysts’ expectations of an increase of 5.5%. Excluding bonuses, the pace of rising wages stood firm at 6% compared with the same period a year earlier, but they were also slightly higher than analysts’ expectations of 5.9%. Despite the strong earnings data, the unemployment rate edged higher to 4.3% in the same period – the highest level since last summer – from 4.2% in the previous three months. The employment rate was steady at 74.5%, while job vacancies decreased and unemployment benefit claims rose slightly.
Last week, the Bank of England’s Monetary Policy Committee voted by seven to two to keep interest rates at a 16-year high of
