Commenting on the latest ONS labour market data, Kevin Brown, savings expert at financial mutual Scottish Friendly, says

“In and of itself, flat wage growth leaves the Bank of England with little fresh reason to change course ahead of Thursday’s interest rate decision.(1)

“Yet stability in earnings should not be confused with the inflation problem (2) having disappeared. Steady earnings will provide some support to budgets for many households. But how far pay is really stretching will depend heavily on what happens to inflation. All eyes are now turned to the release of Wednesday’s CPI. (3)

“An unchanged wage reading would be unlikely on its own to add materially to the case for an immediate rate rise. But a hotter inflation reading tomorrow could add to the Bank’s caution about the path ahead. (4)

“Whatever Thursday’s outcome, building a financial buffer, considering investing money where possible (5), and making sure savings are earning a competitive rate remain sensible priorities for households.”

Source (1): https://www.bankofengland.co.uk/monetary-policy-report/2026/july-2026

Source (2): https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/july2026

Source (3): https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousreleases

Source (4): https://www.bankofengland.co.uk/monetary-policy-report/2026/july-2026

Source (5): https://www.schroders.com/en-gb/uk/individual/insights/why-cash-is-riskier-than-stock-market-investing/