General · 25 January 2026
Strong UK Pay Growth May Limit Bank of England Rate Cuts
Bank of England policymaker Megan Greene warns that strong UK pay growth could limit the extent of interest rate cuts this year. Greene, a member of the Monetary Policy Committee, expressed concern that wage growth, with employers planning rises of 3.5% or more, may hinder efforts to ease inflation, which reached 3.4% in December. Rate decisions will also be influenced by potential rate cuts by the US Federal Reserve.
Reported by Guardian · How we write briefs