UK: Headline wage growth to remain at 2.6% - Nomura

Analysts at Nomura expect UK’s wage growth to remain broadly similar to what it was in last month’s report – i.e. 2.6% headline/2.9% ex-bonuses.

Key Quotes

“A tighter labour market (we see the unemployment rate remaining at 4%, its lowest since the mid-1970s) and past rises in inflation (related to FX weakness) should keep upward pressure on wage growth, which has been subdued over recent years in part thanks to weak productivity growth.”