BoE forecasts pay packets boost in the UK

Households in the UK will finally see a real terms boost to their pay packets next year as wages growth accelerates and inflation dips below 1% for the first time in more than a decade, Bank of England forecasts suggested today.

The Bank’s quarterly inflation report also appeared to cement the likelihood that families will benefit from continued low borrowing costs as interest rates are held at 0.5% until well into 2015 – though savers will continue to suffer.