Pay growth in Great Britain falls below 5% for first time in more than two years

Drop makes November cut to interest rates more likely, as unemployment rate dips to 4%

The growth in employee annual earnings in Great Britain has fallen below 5% for the first time in more than two years, closing the gap between wages and inflation.

Staff pay, excluding bonuses, rose by 4.9% in the three months to August compared with the same period a year earlier, down from 5.1% in the three months to July, according to the Office for National Statistics.

Annual growth in total earnings including bonuses was 3.8% in the three month to August, down from 4.1% for the equivalent figure in July.

The growth in employee annual earnings in Great Britain has fallen below 5% for the first time in more than two years, closing the gap between wages and inflation.

Staff pay, excluding bonuses, rose by 4.9% in the three months to August compared with the same period a year earlier, down from 5.1% in the three months to July, according to the Office for National Statistics.

Annual growth in total earnings including bonuses was 3.8% in the three month to August, down from 4.1% for the equivalent figure in July.

Earlier this month Bailey had suggested that the central bank could cut interest rates more aggressively if data showed the economy was slowing.