Bank of England surveys show firms see pay rising around 3.5% in 2027

Bank of England Surveys Show UK Firms Expect 3.5% Pay Rise by 2027

Key Findings from Bank of England Surveys

Overview of Survey Results

LONDON, Oct 30 (Reuters) - Bank of England surveys released on Friday showed businesses expect to raise pay by around 3.5% next year, similar to current rates but a level likely to concern those policymakers most anxious about broader inflation pressures.

Decision Maker Panel Survey Insights

The Bank of England's Decision Maker Panel survey of businesses in the three months to October said firms expected wage growth of 3.4% over the next year, unchanged from the previous reading taken in the three months to September.

Agents' Summary of Business Conditions

The BoE's Agents' Summary of Business Conditions – a separate survey – reported that firms expected average pay settlements for 2027 to be around 3.6%, similar to this year but slightly higher than previously forecast.

Implications for Policymakers

(Reporting by David Milliken; editing by William James)