Sterling slides as wage forecasts hit rate rise talk


UK unemployment dropped to a near six-year low but sterling has fallen against the dollar after the Bank of England cut wage forecasts, suggesting rates will remain on hold for the foreseeable future.

Office for National Statistics data for April to June, released today, showed the unemployment rate reached 6.4%, down from 6.5% in May. This is the lowest it has been since late 2008. There were 2.08 million unemployed people in the UK in June, 132,000 fewer than for January to March 2014, and 437,000 fewer than a year earlier. However, average wages including bonuses fell 0.2% in the year to June. Excluding bonuses, wages rose by just 0.6% in the year, the lowest rise on record. The ONS said average wage rises were affected by an unusually high number of employees deferring bo...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

The fall in sales volumes over the month was because of food stores, which fell by 1.6%.

UK retail sales slip in May as consumer confidence falls to lowest on record

Shoppers cut back on food spending

clock 24 June 2022 • 2 min read

Event Voice: Your Questions Answered by Barings at the Fixed Income Event

clock 23 June 2022 • 2 min read
"UK is at a crossroads"

Average global funds hold a third less in the UK than before Brexit

Brexit risks still an issue for managers

clock 23 June 2022 • 4 min read