Easing of pay growth needed before rate cuts, says Bank of England’s Broadbent

Financial markets are assuming the Bank will cut interest rates five times next year. Photograph: David Sillitoe/The Guardian

The Bank of England needs to see a steeper and prolonged easing of pay growth before concluding its battle against wage inflation has been won, one of its deputy governors has warned.

In the latest sign that Threadneedle Street has no immediate plans to cut interest rates, Ben Broadbent said that in the current uncertain environment it was too early to say the labour market was cooling.