Wage growth in the UK remained high at the beginning of the new year, indicating that although US trade tariffs may inhibit economic growth, continued high inflation will still be a concern for the Bank of England. The UK Office for National Statistics said on Tuesday that in the three months ending February, the key indicator of average weekly wage excluding bonuses increased by 5.9% over the same period last year, up from 5.8% in the three months ending January. The unemployment rate remained at 4.4%. At the beginning of April, US President Trump announced a 10% tariff on all goods imported from the UK and a 25% tariff on automobiles, aluminum, and steel, triggering trade turmoil, which may cause companies to hesitate to recruit new employees. However, Bank of England policymakers will still have to deal with the still high wage growth rate, which is one of the drivers of inflation. Investors expect the Bank of England to cut interest rates at its next meeting in May.

Wage growth in the UK remained high at the beginning of the new year, indicating that although US trade tariffs may inhibit economic growth, continued high inflation will still be a concern for the Bank of England. The UK Office for National Statistics said on Tuesday that in the three months ending February, the key indicator of average weekly wage excluding bonuses increased by 5.9% over the same period last year, up from 5.8% in the three months ending January. The unemployment rate remained at 4.4%. At the beginning of April, US President Trump announced a 10% tariff on all goods imported from the UK and a 25% tariff on automobiles, aluminum, and steel, triggering trade turmoil, which may cause companies to hesitate to recruit new employees. However, Bank of England policymakers will still have to deal with the still high wage growth rate, which is one of the drivers of inflation. Investors expect the Bank of England to cut interest rates at its next meeting in May.