Investec's Philip Shaw said in a report that the latest UK job market data shows that long-term inflationary pressure is weakening. The report shows that labor market conditions have cooled further, and the unemployment rate has reached its highest level since January 2021. Shaw said that in terms of wage growth, the Bank of England's favorite measure — private sector pay without bonuses — fell further to 3.9% in the three months ending October, down from 4.2% in July-September, but slightly higher than average expectations. He said that this employment report alone is not enough reason for the Bank of England to cut interest rates on Thursday, but long-term inflation signals indicate that interest rates are likely to be cut by 25 basis points this week.

Investec's Philip Shaw said in a report that the latest UK job market data shows that long-term inflationary pressure is weakening. The report shows that labor market conditions have cooled further, and the unemployment rate has reached its highest level since January 2021. Shaw said that in terms of wage growth, the Bank of England's favorite measure — private sector pay without bonuses — fell further to 3.9% in the three months ending October, down from 4.2% in July-September, but slightly higher than average expectations. He said that this employment report alone is not enough reason for the Bank of England to cut interest rates on Thursday, but long-term inflation signals indicate that interest rates are likely to be cut by 25 basis points this week.