Commenting on the latest wage data published this morning by the ONS, Scottish Friendly's savings expert Kevin Brown says

“Falling wage growth, albeit modest, will be welcomed by the Bank of England, especially at a time when global energy costs are rising due to tensions in the Middle East.

“That said, today’s news will do little to alter the course of interest rates. The broader environment remains too uncertain, and the Bank’s rate-setters will want to avoid doing anything that will stoke inflation or pile unnecessary pressure onto an already fragile economy.

“While the jobs market has proven fairly resilient of late, it is showing signs of strain. If geopolitical tensions persist, unemployment is likely to rise considerably, which would further complicate the outlook for interest rates.

“For savers, the environment remains supportive in the short term, but households should not assume it will last. Protecting cash returns and considering longer-term investment strategies remains sensible in an uncertain inflation backdrop.”