UK Jobs Data Keeps Questioning The Need For Rate Hikes

Despite superficially positive headline UK jobs data, underlying trends in private sector hiring and wage growth remain weak. ING economists expect the Bank of England to hold rates steady before resuming cuts in 2027.

Key Takeaways

• 1.UK private sector hiring remains weak despite slight May improvements, with consumer-facing industry job declines worsening.
• 2.Private sector wage growth is rapidly slowing, providing a dovish signal for the Bank of England.
• 3.ING expects the Bank of England to maintain rates this year and resume cuts in 2027.

Table of Contents

• UK jobs data keeps questioning the need for rate hikes
• Hiring is still very weak in consumer industries
• Private sector wage growth has further to fall
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