Growth in workers’ pay in Britain, excluding bonuses, eased to 4.8% in the three months to July compared with a year earlier, the Office for National Statistics (ONS) reported on Tuesday. The figure, which aligned with economists’ expectations in a Reuters poll, marked a slowdown from the 5.0% recorded in the three months to June.

The Bank of England, which cut interest rates last month to 4% from 4.25%, is expected to hold rates steady this week amid concerns over stubborn inflationary pressures. Wage growth remains a key focus for policymakers as it directly feeds into inflation and impacts household spending power.

Despite the easing, the jobs market continues to show signs of tightness, and analysts say pay growth at current levels may still be too strong for the central bank to begin a cycle of deeper rate cuts. The BoE will weigh the latest data carefully as it assesses the balance between supporting growth and taming inflation.