Further interest rate cut could be on the cards after report suggests jobs market cooling

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The Bank of England previously expressed concern that the pace of pay rises was helping to drive up inflation when it raised rates last year.

The prospect of the Bank of England cutting interest rates further in the near future has been raised after a closely watched report suggested the UK jobs market is showing signs of cooling. Researchers found the pace of pay rises slowed last month, while the hiring of temporary and permanent staff continued to decline. The report, based on a survey of around 400 recruitment and employment consultancies in July, said vacancy numbers also fell for the ninth month in a row.

Read more from Sky News:Saatchi bid for Telegraph rejectedFujitsu boss meets with Post Office victimsDisney returns to profitShops urged to close early over riot fears Mr Bailey expressed caution over further imminent cuts during an interview with Sky News following the Bank's decision to reduce rates from 5.25% to 5%.

 

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