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UK unemployment rate at 4-decade low, but pay growth still trails inflation

Reports to complicate the debate among BoE officials over the need for higher interest rates

Reuters  |  London 

British workers saw their pay and bonus growth fall further behind inflation in the three months to end-May, data showed on Wednesday, but the jobless rate hit a 42-year low. The reports will complicate the debate among Bank of England (BoE) officials over the need for higher interest rates. Sterling bounced against the dollar after official figures showed the unemployment rate in the period between March and May fell to its lowest since 1975 at 4.5 per cent, below the average forecast of 4.6 per cent in a Reuters poll of economists. But lacklustre wage growth showed the ...

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First Published: Wed, July 12 2017. 17:23 IST