Bank of England set for two more interest rate cuts this year [Video]

Cooling wage growth looks likely to pave the way for two more interest rate cuts in the UK this year, writes John-Paul Ford Rojas.

Average weekly earnings in the UK in the three months to July were 5.1pc higher than a year earlier, according to the Office for National Statistics (ONS).

That was the lowest increase for two years and marks a sharp slowdown compared with July last year when wages were growing by 7.8pc.

Experts said it should be enough to persuade the Bank of England to cut rates further this year – after a quarter point reduction from 5.25pc to 5pc in August.

Ashley Webb, UK economist at Capital Economics, said: “The further easing in wage growth will be welcomed by the Bank of England as a sign that labour market conditions are continuing to cool.”

However, few expect the Bank to go for another cut when its rate-setting Monetary Policy Committee meets …