DAVY VIEW

This morning’s data show the UK labour market continuing to tighten in August, the pace of jobs growth picking up, unemployment falling to 4.5%, vacancies hitting a fresh record high of 1.2m and the underlying pace of wage growth accelerating to 4.1-5.6%, according to the ONS. Still, the key uncertainty remains how the UK labour market will be affected by the end of the jobs furlough scheme, which may still persuade the Bank of England to wait a few months before raising rates.