Analysts: UK employment data continues to put the Bank of England on a path towards interest rate cuts.

Financial website Forexlive analyst Justin Low commented on the UK's May employment data, stating that the unemployment rate continues to rise, with this data slightly higher than expected. The three-month ILO unemployment rate has climbed to its highest level since 2021, and with June employment data showing further weakness, this still puts the Bank of England on track for interest rate cuts, despite ongoing inflationary pressures remaining a challenging issue. The good news for the Bank of England is that they can at least take some comfort from the easing of price pressures. Real wages are expected to continue to decline, with the May three-month total wage growth rate at 1.0% and regular wage growth rate at 1.1%, the lowest level since mid-2023.