According to ChainCatcher, HSBC analyst Elizabeth Martins stated that UK employment data may prompt the Bank of England to cut interest rates in August. Slowing wage growth and rising unemployment rates have increased market expectations for a rate cut.
The new wage tax may reduce wage growth, while the increase in minimum wage may boost wage growth. Although the May inflation data was weaker than expected, it is not enough to prompt Bank of England policymakers to cut interest rates next week.