UK: Positive wage surprise could revive second BoE rate hike sentiment - ING

While Governor Carney may have saved some ink after yesterday’s UK inflation figures, the true test for the BoE’s hawkish assumptions over the coming months will be the labour market data – not least wage inflation dynamics, according to Viraj Patel, Research Analyst at ING.

Key Quotes

“It may be a bit too premature to draw any tangible conclusions from today’s UK jobs report, but we will need to see wage growth moving in the right direction soon to justify any further UK rate curve steepening (assuming a smooth Brexit). Broadbent and Haldane also speaking. GBP/$ would move above 1.32 on a positive jobs report.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.