UK employers plan to increase wages by 4% in the next 12 months.

Employers in the UK plan to raise wages by 4% over the next 12 months.

That’s according to a quarterly survey conducted by the Chartered Institute of Personnel and Development. he previous survey showed a similar result.

• “While employers’ pay rise expectations remain above pre-pandemic levels, we would expect them to adjust their plans for pay rises in the coming months, as inflation falls and the labour market continues to slow,”

Info comes via a Reuters report, adding that the UK’s Resolution Foundation think tank, in a separate report on Monday, also said the current growth in inflation-adjusted wages looked unsustainable

• “Unless productivity picks up, wage growth will peter out, or pay rises will simply be passed on through higher prices and prolong our inflation problems”

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Last week we had the Bank of England remain on hold, with expectations now building for a June or perhaps August rate cut:

• The Bank of England still has cold feet on rate cuts, reluctant to commit
• Analysts tip a June Bank of England rate cut. Or August 😉

This article was written by Eamonn Sheridan at www.forexlive.com.