Wages grow at slowest rate in over two years – what it means for interest rates

Although wage growth continues to slow, an interest rate cut at the September MPC meeting looks unlikely

Side view of a city commuter riding to work on a bicycle
(Image credit: Halfpoint Images via Getty Images)

Wages are now growing at the slowest rate in over two years, the latest data from the Office for National Statistics (ONS) shows. 

In the three months to July, regular wages (excluding bonuses) grew by 5.1% annually, down from 5.4% in the three months to June. Meanwhile, total earnings (including bonuses) grew by 4%, down from 4.5%. It continues a trend of slowing pay growth that has been in motion for almost a year, and is another sign that the economy is starting to normalise after several years of high inflation. 

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.