Institution: The Bank of England may accelerate the pace of interest rate cuts in the second half of the year

Odaily News Luke Bartholomew, senior economist at investment firm Abrdn, said in a report that the impact of upcoming increases in UK employer national insurance contributions and the national living wage may prompt the Bank of England to accelerate interest rate cuts in the second half of this year. Data on Tuesday showed that the average wage growth rate rebounded to 5.9% by the end of 2024, and for now, interest rate cuts will still be gradual. However, the biggest test will be how the labor market responds to the changes announced in the government's autumn budget. There are clear signs that expectations for hiring intentions have cooled. If economic growth remains very slow, there is a clear possibility that the Bank of England will cut interest rates more quickly in the second half of this year. (Jinshi)