Foreign-exchange trading early in the week centred on upcoming UK labour-market statistics, particularly wage growth, a key input for the BoE’s inflation outlook.
After the MPC reduced rates in a narrow 5–4 decision, traders looked for signs that pay pressures were easing sufficiently to allow further gradual cuts.
Sterling consolidated near two-week highs against the dollar, supported by firmer risk appetite and anticipation of resilient GDP data later in the week.
For households and businesses, wage dynamics will shape real income trajectories into the autumn and influence demand for credit.
For gilt markets, softer pay growth could anchor inflation expectations and support duration, while upside surprises risk repricing BoE expectations and pushing up the short end of the curve.
The episode highlights how, in the current cycle, high-frequency UK data quickly transmit to FX and rates, affecting broader financial conditions.
With unemployment drifting up and vacancies normalising, investors expect wage growth to moderate, but the pace remains uncertain given sectoral mismatches and public-sector negotiations.
That uncertainty is why the BoE emphasised data dependence and the near-term balance of risks in its August minutes.
Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
Economists said the Q2 GDP surprise reduces pressure for rapid follow-up cuts after August’s split decision.
The UK economy expanded by 0.3% in Q2 2025, outpacing expectations and easing recession fears.
The pound strengthened this week as traders priced Fed easing and reassessed BoE cuts after resilient UK growth.
Surveyors reported improved buyer enquiries and stabilising prices in July, hinting that BoE easing is feeding through.
Londoners are purchasing the lowest proportion of houses outside the capital in over a decade due to stalling local prices and the shift back to office working.
FTSE 100 property developer Berkeley Group has warned of a housing slowdown in London, forecasting further decline unless the government addresses regulatory and tax hurdles.
Amazon offers 45% discount on L'Oreal Paris Laser Renew Anti-Ageing Triple Action Eye Cream.
UK borrowing costs for 30-year debt reached 5.72%, a 27-year high, raising fears of economic decline.
Poundland plans to close up to 68 stores in 2025 following financial difficulties and restructuring.
Chancellor Rachel Reeves announced the autumn budget for November 26, aiming to address a £30 billion deficit with growth measures.
Financial expert Martin Lewis has issued a strong warning against criminals who use his name and deepfake technology in 'disgraceful' online adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
The Powerball jackpot has soared to an estimated $1.3 billion, the fifth-largest in the lottery's history, after no winning ticket was sold in the latest drawing, marking the 41st consecutive drawing without a winner.
The UK's long-term borrowing costs have reached a 27-year high, fueling speculation about the government's economic credibility and the future of Chancellor Rachel Reeves following a significant government reshuffle.
Experts caution that Premium Bonds winnings may lead to unexpected tax bills depending on how they’re used.
McVitie’s introduces a new caramel-flavoured Penguin biscuit available in major UK supermarkets just in time for autumn.
Despite a wider trend of decreasing car insurance premiums in the UK, a new report indicates that prices for drivers under the age of 25 have seen a recent increase.
A major government reshuffle has fueled speculation about the future of Chancellor Rachel Reeves as the UK's long-term borrowing costs reach a 27-year high amidst broader European economic uncertainty.
The Powerball jackpot has skyrocketed to an estimated $1.3 billion after no one won the top prize in the latest drawing, marking the 41st consecutive drawing without a winner and setting up the fifth-largest jackpot in the lottery's history.
Greggs has introduced a £5 meal deal nationally along with new autumn-inspired menu items including Chicken Fajita Bake and Pumpkin Spice specials.
Financial expert Martin Lewis has issued a powerful warning against online criminals who use his name and deepfake technology in 'disgraceful' adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
New data reveals councils increasingly use one-off cash incentives to persuade private landlords to accept homeless households, costing taxpayers millions.
Councils are spending millions placing homeless families in hotels due to housing shortages, raising questions about long-term policy failures.
Clase Azul is a premium Reposado Tequila that is as famous for its elegant, hand-painted ceramic decanters as it is for its contents.
Formula 1's elite showcase their extravagant maritime lifestyles with multi-million pound yacht collections, from Toto Wolff's €22m vessel to Charles Leclerc's twin boats.
Following Congress’s vote to strip federal funding, public TV and radio stations race to fill budget holes with local donations, reduced network dues, and a national rescue push.
Labour accused of planning to replace traditional meat with insect proteins in British diets to cut carbon emissions.
Virgin Voyages introduces its fourth Lady ship, the Brilliant Lady, designed as an adult-only party cruise with innovative entertainment and dining.
Lords and Ladies of the manor are facing financial difficulties, leading them to sell off their historic estates due to declining revenues and the high cost of maintenance.
A price increase for the weight-loss drug Mounjaro has sparked affordability concerns among its 1.5 million users in the UK, despite a discount being offered.
