Pound Hits Lowest Level Since August as Wage Growth Slows

2025-10-14 06:46 By Joana Ferreira 1 min. read

The British pound fell below $1.33, hovering at its weakest level since August 1, after weaker wage growth data raised expectations that the Bank of England could continue cutting interest rates, albeit gradually.

The latest UK jobs report showed regular pay growth eased to 4.7% in June–August 2025, down slightly from 4.8% in the previous three months and marking the weakest pace since March–May 2022.

Other indicators suggest the labor market is stabilizing: the unemployment rate rose slightly to 4.8%, above forecasts of 4.7%, while September payrolls fell by 10,000, reversing a 10,000 gain in the previous month.

Money markets are now pricing in almost nine basis points of Bank of England interest rate cuts by year-end, up from five basis points before the labor report.



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