The GBP/USD currency pair rose from $1.261, trading at approximately $1.250 in today’s trading session. This rise comes after the UK reported stronger wage increases than expected, which supports the Bank of England’s careful approach toward reducing interest rates.
Private Sector Wages Surpass BoE Forecast
Wages, not including bonuses, increased by 5.2% in the last three months ending in October, mainly due to higher earnings in the private sector. This increase surpassed the anticipated 5% rise. The Bank of England had previously expected wages to rise by 5.1% by the end of December.
The Bank of England will announce its decision on interest rates this Thursday. It is likely to keep the rates unchanged. Investors are expecting three rate reductions in 2025.