Pound slides as BOE slashes wage-growth forecast

|By:, SA News Editor

In its quarterly inflation report, the Bank of England halved its forecast for wage growth this year to 1.25%.

Expectations had been for the bank to begin hiking rates later this year or early next, but officials signaled the weak wage growth could forestall any such move. "In light of the heightened uncertainty about the current degree of slack, the committee noted the importance of monitoring the expected path of costs, particularly wages, in assessing inflationary pressure."

Sterling is lower by 0.6% to $1.6706.

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