1
Labour Cooling: Regular wage growth slows to 4.6% YoY while unemployment climbs to 4.7%.
2
Services Disinflation: Unit labour cost pressures recede, opening the door for MPC rate cuts.
3
Yield Curve Compression: 2Y SONIA rates fall 18.4 bps; market prices in 32.5% higher odds of near-term BoE cuts.
4
FX Differential Drag: Uncovered interest parity adjustment drags GBP/USD down to 1.2830 (-0.54%).