BOE Rate Hike in May Looks Increasingly Likely
- Officials are worried about domestically generated inflation
- U.K. central bank publishes next policy decision on Thursday
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Bank of England policy makers look increasingly likely to raise interest rates at their May meeting after data suggested faster domestically generated inflation is on the way.
Wages are rising at their fastest pace since the end of 2016, the Office for National Statistics said Wednesday, a sign that the tightness in the labor market is stoking price gains just as the currency-driven jump in headline inflation starts to drop off. That could spur policy makers to act as households get some long-awaited relief from a yearlong squeeze on their incomes.