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.

Britain’s jobless rate has fallen to its lowest level in more than seven years but pay growth was a bit slower than expected, suggesting the labour market is not hot enough to speed up a Bank of England interest rate hike.

The Bank of England cut its forecasts for British economic growth over the next three years yesterday. It cautiously backed bets in financial markets that it will only start to raise interest rates in around a year.