BoE Indicates Reduced Rate Cuts as Wage Growth Remains Persistent

Bank of England Signals Fewer Rate Cuts Amid Ongoing Wage Increases

A senior official from the Bank of England has indicated that the central bank might need to reduce the number of interest rate cuts planned for this year. This caution comes as wage growth in the UK remains strong and as potential changes in US monetary policy loom. Megan Greene, who serves on the Bank’s Monetary Policy Committee, expressed concern that persistent increases in wages could hinder inflation from reaching its intended target. Her remarks highlight that the journey toward lower borrowing costs may be more challenging than financial markets expect. During her address at the Resolution Foundation, Greene noted that the recent moderation in wage growth could already be over.