UK wage growth jumps, making interest rate rise more likely

Unemployment rate unexpectedly falls to 3.8% in three months to April, in sign of strength for jobs market

UK wages grew at a faster than expected pace in April, reinforcing expectations the Bank of England will raise interest rates next week.

Figures from the Office for National Statistics show growth in average regular pay, excluding bonuses, strengthened to 7.2% in the three months to April – the highest level on record, excluding the Covid pandemic.