UK households report fastest income growth since 2016 - IHS Markit survey

A survey of the UK households, conducted by the IHS Markit, showed on Monday that the Kingdom’s households report fastest income growth since the global financial crisis in 2009, which raises the chances of a BOE rate hike sooner (than later).

Key Findings:

An upcoming increase in the minimum wage was the most likely reason why households reported that their income from work grew at the fastest rate since July 2016, when income growth hit its highest since the survey began in January 2009.

Some 57 percent of households expect the BoE to raise rates in the next six months, little changed from February.

IHS Markit economist Tim Moore said, “While higher salary payments will help offset sharply rising living costs faced by consumers, it also adds to the likelihood of additional interest rate rises in 2018.”