Strong UK Labor Data Fuels Expectations for Bank of England Rate Hike

Recent UK labor market data for September indicates a strengthening trend, with payrolled employment increasing by 13,000. Furthermore, private sector wage growth rose to 3.0% year-over-year, marking the first increase since 2024. This stronger-than-expected data is reinforcing market expectations that the Bank of England will proceed with an interest rate hike as early as next month, especially as officials have signaled it is becoming harder to overlook higher energy prices.