Average weekly earnings 6.4 yy, stronger than forecasts
BoE watching pay growth as it gauges next rate hike move
Jobless rate holds at 3.7, close to fivedecade low
Employment grows again, up by 27,000
Inactivity rate edges down

LONDON, Jan 17 Reuters Pay growth in Britain which is being closely watched by the Bank of England as it gauges how much higher to raise interest rates picked up more pace in the three months to November, official data showed on Tuesday.

Pay excluding bonuses rose by an annual 6.4 in the SeptembertoNovember period, the biggest increase since records began in 2001, not counting jumps in the COVID19 period which were distorted by lockdowns and government support measures.

Pay including bonuses also rose by 6.4, the Office for National Statistics said.

Economists polled by Reuters had expected total pay and the exbonuses measure to rise by 6.2 and 6.3 respectively.

The ONS said Britain39;s jobless rate held at 3.7, in line with the poll, close to its lowest in almost 50 years. Employment rose by a fasterthanexpected 27,000.

BoE Governor Andrew Bailey said on Monday that a shortage of workers in the labour market posed a major risk to forecasts that inflation will fall from its current levels above 10.

The BoE looks set to raise borrowing costs for a 10 time in a row next month, and the main question for investors is the scale of the increase as it weighs up the risk of a recession.

Financial markets were mostly pricing in a half…