MANCHESTER, England, May 4 (Reuters) - British
companies' predictions for wage growth in the coming 12 months
cooled in April to their lowest level for seven months, and
their expectations for inflation also eased, a Bank of England
survey showed on Thursday.
The BoE's monthly Decision Maker Panel showed companies
expected wage growth in the coming year of 5.6% over the three
months to April - the lowest reading since the three months to
September.
The single-month reading for April of 5.4% was the lowest
since July.
A separate survey from human resources data company XpertHR
last week showed the median pay deal at British companies was 6%
in the first quarter of 2023.
BoE officials are watching gauges of wage growth closely as
they judge how far to raise interest rates to prevent persistent
price pressures taking hold in the economy, with annual consumer
price inflation still in double-digits.
Financial markets show a roughly 89% chance that the BoE
will raise interest rates to 4.5% from 4.25% next week
Thursday's survey showed companies expected inflation in a
year's time to fall to 5.6%, the lowest reading since the series
started in May last year, from the latest reading of 10.1% in
March.
Expectations for companies' own selling prices in the year
were steady at 5.5% over the three months to April.
The single-month reading for April jumped to 5.9% from 5.3%
in March, its highest since October.
(Reporting by Andy Bruce; editing by Sarah Young)
Messaging: @brucereuters))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.