Hot U.K earnings data point to more bank rate hikes....

The ONS confirmed that growth in regular pay, which excludes bonuses, stood at 7.3% between March and May '23. That’s level with the highest growth rate which was also seen last month, and during the April to June '21 period.

Growth in average total pay, which includes bonuses, was 6.9% for the period.

Despite the large increase in cash terms, in real terms, total pay dropped by 1.2%, and regular pay fell by 0.8% as a result of the persistently high rate of inflation.

The next MPC meeting is scheduled for Aug 03rd, so expect further rate hikes.

Anyone with a fixed deal ending in the next 6 months would be wise to start getting things in order. Lenders have been hiking their rates over the last few weeks, and more have announced rises this week (Barclays, TMW, Saffron, Accord, Kensington and Furness).

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