UK Labour Market Weakness Won't Stop Rate Hikes

The Bank of England has few options when it comes to setting interest rates due to the ongoing deferral of politically tough decisions, despite a weak labour market.

A recent UK jobs data report shows that wage inflation, excluding the public sector, remains tame.

This news is good for the Bank of England in one sense, as it suggests that wage pressures are not as high as previously thought. However, this has little bearing on the central bank's decision to raise interest rates.