THE BANK of
The Bank has slashed its forecast for the average rise in earnings this year. In the last report, the institution expected a much stronger uptick in wages, projecting an above-inflation increase of 2.5 per cent during 2014.
Now, policymakers are projecting a real-term cut in wages during 2014, halving their growth forecast to just 1.25 per cent.
Speaking about the rapid falling in unemployment over the past year, governor
An analyst at
The change in the upper rate of tax during April last year had an affect on the figures. While wages dipped by 0.2 per cent on the year when bonuses were included, there as actually a 0.6 per cent increase when only regular earnings were considered.
"April's annual rate was distorted down by delayed bonus payments in 2013 as the government cut the top rate of tax. Given these base distortions, it may be more informative to look at monthly rates of growth in regular pay," said
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