Business failures on the rise in England and Wale

Business failures on the rise  in England and Wales;  Interest rate  hike less likely  as UK  wage growth accelerates  - Business Live
Wage growth  in Britain has  reached 5.2%  year-on-year, prompting the Bank of England to leave interest rates  unchanged on  Thursday.


Bank of England rate cuts now less likely
City traders are scrambling to readjust their expectations  of a UK interest rate  cut after wage growth accelerated this  morning.
Money markets now  show there is just a 7% chance the Bank of England  will cut interest rates on Thursday, down from around 15%  yesterday.
Markets are no longer  expecting three cuts next  year. The bank rate, currently  at 4.75%, is now  expected to fall to around 4.1%  by December 2025, meaning only two  quarterly rate cuts  have been fully priced  in.
It was expected to fall  closer to  4% yesterday, which  would imply a three-quarter rate  cut next  year. Ashley Webb, UK economist at Capital Economics,  believes that the wage data  released today will do little to  distract the  Bank from  its concerns about high inflation,  explaining:
October's rise in  stable private sector  wage growth will  reinforce the Bank of  England's concerns about a  pick-up in inflation despite the  news of weak  activity.