Economists warn BoE could hold rates as wages stall

Non-existent wage growth and rising inflation could put the Bank of England off any rate hikes in 2017 as the economy tightens.

Economists warn BoE could hold rates as wages stall

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However, Bettrell added the labour market as a whole looked in general good health.

“Notwithstanding relatively weak wage growth, the UK labour market looks fairly robust – for now at least.

“Unemployment is expected to rise later this year as Brexit-related uncertainty deters firms from hiring more workers, but at least any rise will be from historically low levels,” he said.

A surprise increase in the claimant count of 25,500 for March was the largest increase since July 2011 and could be a sign of tougher time ahead.

Bettrell added: “The claimant count figure is often viewed as an early warning signal of a potential economic downturn, so this surprise increase could be a sign that labour market conditions are about to become tougher.”

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