Mr Bailey said pay growth rose “not quite as much as we were expecting” in the latest data, but that it did not change the Bank’s view that wage increases are likely to slow over the next year.
The Governor of the Bank of England has said the UK is experiencing a “weak growth environment” as he cautioned over the impact of “global fragmentation” on the world economy.
And new official figures published on Tuesday found that growth in pay for UK workers, excluding bonuses, rose for the third time in a row, with increases seen in both the private and public sector.
The Bank’s Monetary Policy Committee decided to reduce interest rates to 4.5% earlier this month – marking the third time rates have been cut since August last year.
However, it painted a gloomy picture for the UK economy by halving its growth forecast for the year and predicting a jump in inflation later on in 2025.
