UK labour market report: Focus firmly on the average wage numbers - Nomura

UK labour market report is arguably the most important piece of economic news ahead of the BoE’s 3 August MPC meeting and the focus will be firmly on the average wage numbers, where annual rates of growth have been weak, according to analysts at Nomura.

Key Quotes

“That will remain the case this month given that past monthly declines remain within the annual comparison. What is far more important, therefore, is to monitor the monthly growth rate of private sector ex-bonus (regular) pay, which was 0.2% and 0.4% m-o-m in the past two reports respectively. Another decent number would support our view of the first rate rise in a decade at the August policy meeting.”