Average weekly earnings excluding bonuses (three-month average) increased to 2.7% y/y in April from 2.3% in March (which was revised up from 2.2%) and thus wage growth is at its highest level since February 2009. Wage growth in the private sector is at 3.2% y/y.
Higher wage growth is important for the timing of the first hike and thus today's release supports our (non-consensus) call that Bank of England will hike already in November this year. There was no major news in the MPC minutes from the June meeting. MPC voted unanimously in favour of keeping the Bank Rate and the stock of purchased assets unchanged at 0.5% and GBP375bn respectively.
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