HSBC analyst says UK employment data may prompt central bank to cut rates in August

According to ChainCatcher, HSBC analyst Elizabeth Martins stated that UK employment data may prompt the Bank of England to cut interest rates in August. The slowdown in wage growth and the rise in the unemployment rate have raised market expectations for a rate cut.

The new wage tax may reduce wage growth, while the increase in the minimum wage may boost wage growth. Although the May inflation data was weaker than expected, this is not enough to prompt Bank of England policymakers to cut interest rates next week.