According to Jinshi Data, economists at U.S. Bank indicate that the slowdown in wage growth in the UK may support further interest rate cuts by the Bank of England. The average wage growth excluding bonuses in March fell to 5.6%.
The market expects the Bank of England to cut interest rates again before the end of 2025. U.S. Bank predicts three rate cuts in August, September, and November, bringing the policy rate down to 3.5%.