0832 GMT - The impact of the forthcoming rise in U.K. employer national-insurance contributions and the national living wage could prompt the Bank of England to speed up interest-rate cuts in the second half of the year, Abrdn's Luke Bartholomew says in a note. For now, rate cuts will remain gradual after data Tuesday showed average pay growth picked up to 5.9% at the end of 2024, he says. However, the big test will be how the labor market reacts to the changes announced in the government'sautumn budget. There are "clear signs" that hiring intentions have cooled in anticipation, he says. "If growth remains very sluggish there is a clear path to more rapid rate cutting in the second half of the year." (jessica.fleetham@wsj.com)
(END) Dow Jones Newswires
February 18, 2025 03:33 ET (08:33 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。