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5/11/2017, 1:51 PM (Source: TeleTrader)
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Carney: Wage growth partly slowed down due to Brexit

There is some evidence that the slowdown in wage growth has come as a consequence of Britain's decision to leave the European Union, Governor of the Bank of England Mark Carney said on Thursday.

Data has shown that British businesses are hesitating to bring in higher wage cost at a time of uncertainty regarding access to the single market and the Brexit process, the rate-setter said, but added that weak wage growth largely pre-dates the country's decision to exit the bloc. Wage growth has been slow for several years, despite exceptionally strong job creation, and partly because of poor productivity that was present even before Brexit, Carney explained.

On the contrary, the overshoot of inflation is indeed the product of last year's referendum due to the judgment of the market that led to the depreciation in the value of the pound, the policymaker concluded.

Breaking the News / IB