The pound dropped again against the US dollar, by over 0.50% over the course of the day, while strengthening by a similar amount against the euro. It has all been going slightly south this morning, however.
Data released today by the ONS reveals that while wages are raising fast, with bonuses taking salaries up by 5.1% per annum, with inflation currently almost double that the squeeze on incomes is continuing.
The ONS also revealed that job vacancies have fallen.
It’s a super-busy week for data, with inflation tomorrow, and both Gfk Consumer confidence and Retail sales on Friday.
A poll of 50 economists from Reuters has predicted that the Bank of England will raise interest rates by 50 basis points again next month, taking interest rates to 2.25%.
GBP/EUR past year
