Voca argues against rate cut tomorrow

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Voca, the organisation formerly known as Bacs, which processes some 90% of UK salary payments to bank accounts, says latest figures on average earnings growth in the private sector argue strongly against the Bank of England cutting rates tomorrow.

The figures suggest inflation in take-home pay is currently running at 5.8% on average among the FTSE 350, it says. The rate is higher at 7.4% in the “industry” sector – mining, construction, energy and utilities - up from an annualised rate of 6.5% in November last year, although it is down slightly at 4.8% in the services sector, from 4.9%. Either way, that rate of inflation is running well above the Bank's long-term consumer price index target of 2%, Voca notes. It adds its methodology excludes figures from the public sector, but that the high rates of wage growth in the private...

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