Thursday, August 14, 2014

BOE Cuts UK Wage Forecast in Half

The Bank of England has halved its forecast for average wage growth, saying it now expects average salaries to rise by 1.25% this year.

The forecast comes as official figures showed average wages excluding bonuses grew by 0.6%.

That is the slowest pace of growth since records began in 2001.

However, the Bank upgraded its growth forecast for this year to 3.5% from 3.4%, and for 2015 it forecast growth of 3%, up from 2.9%.

The Bank’s latest quarterly economic forecast also indicated that it believed the level of spare capacity in the UK economy has narrowed to around 1% of GDP.

In February, it said it believed the amount of spare capacity in the economy was within a range of between 1% and 1.5% of GDP.

via BBC

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