Wage surge dashes hopes for interest rate cuts as inflation fears grow

HOPES that interest rates will soon start falling were dashed yesterday after an unexpectedly big increase in wages stoked inflation fears.

Official jobs figures showed that wages rose by 5.2 per cent in the three months to October.

GettyAfter the surge in wage growth, traders have now put a close-to-zero chance of interest rates being cut at the Bank of England’s meeting on Thursday[/caption]

The figure is up from 4.4 per cent in September and well above the 4.6 per cent expected.