BoE Unfazed by Weak Labour Market, Eyes Further Rate Hikes

The Bank of England is unlikely to be swayed by a weak labour market in raising interest rates, despite recent jobs data showing tame wage inflation.

A recent survey revealed that wage growth outside the public sector remains subdued, with annual increases at around 3.2%.

This has led some analysts to question whether the central bank will be able to justify further rate hikes in light of a slowing economy and weak labour market.

However, others argue that the Bank's hands are tied by ongoing deferral of politically tough decisions, leaving it with few options but to press on with rate rises.