Kevin Brown, savings expert at Scottish Friendly, has commented on this morning's labour market overview from the ONS:

“This morning’s dip in regular wage growth, now down to 4.2%, marks a clear continuation of the cooling trend that’s been building momentum since last summer.

“Pay growth had already been climbing down from 4.7% since the middle of last year, and a further slowdown in the three months to December bolsters the view that the labour market is losing momentum and that domestic inflation pressures are gradually easing.

“For the Bank of England, that nudges the door further open to rate cuts this year. However, tomorrow’s inflation data will still be decisive in shaping the timing.

“For borrowers, softer wage growth increases the likelihood that interest rates begin to edge lower in the coming months. For savers, this is a potential warning sign. When the Bank of England does decide to make a cut, savings rates can fall quickly and in real terms, inflation still erodes the value of cash over time.

“That makes this a good time to review savings arrangements and, for those with longer-term horizons, to think about investment options that could potentially outpace inflation.”