Soaring pay growth puts pressure on the Bank to act again, but a slowing economy could tip into recession

UK pay rises at record rate despite growth in unemployment

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The time to stop raising interest rates is now, say business lobby groups who fear the negative impact of another rise in the cost of borrowing on their members after the latest jobs figures showed pay rises including bonuses, rocketing to 8.5% a year.

Salaries have soared this year in response to rising inflation and remained stubbornly high, despite 14 consecutive interest rate rises by the Bank of England.

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