Slow growth of UK wages could delay interest rate hike

Workers’ pay in Britain grew at a slower than expected pace in the three months to October, suggesting the Bank of England will take even longer to raise interest rates from the record low in place for nearly seven years.

Investors took the weak wage data as a sign that the Bank of England would not be matching the US any time soon as the Federal Reserve started on its rate-hiking cycle.

The UK Office for National Statistics said regular earnings of workers — excluding bonuses — rose 2% in the three months to October, its slowest since the three months to February.