The GBP/JPY currency pair edged lower on Tuesday, after data showed UK wage growth had decelerated further in the three months to November, which reinforced investor expectations of sharp interest rate cuts by the Bank of England this year.
Average weekly earnings, including bonuses, rose 6.5% year-on-year to GBP 666 per week in the three months to November. It has been the slowest wage growth since the period to March 2023.
Average earnings grew at a slower rate in both the public sector (6.6% year-on-year versus 7.2% year-on-year in October) and the private sector (6.4% YoY versus 7.1% YoY in October).
Regular pay, excluding bonuses, rose 6.6% year-on-year to GBP 623 per week in the three months to November, slowing from a 7.2% rise in the preceding period and also matching market consensus.
UK’s adjusted experimental unemployment rate was reported at 4.2% in the three months leading up to November, or unchanged compared to the August to October period.
UK’s adjusted employment rate went up to 75.8% during the period from 75.7%, while the economic inactivity rate went down to 20.8% from 20.9% previously.
The Bank of England is to hold its next policy meeting on February 1st.
As of 8:10 GMT on Tuesday GBP/JPY was edging down 0.18% to trade at 185.072. The minor Forex pair has pulled back from a 5-week high of 186.161, which it registered on January 11th.
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