DAVY VIEW

UK results for the labour market this morning continue to show little or no evidence of second-round effects due to higher energy prices this year. Payrolls declined again in August, and July’s decrease was revised to indicate a weaker picture than what was shown last month. Private sector wage growth also remained contained below 3%, and the unemployment rate was unchanged at 4.9%. Focus will now shift to the consumer price index result for August and the Bank of England (BoE) meeting later this week.