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British employers expect to increase wages only minimally over the next 12 months despite hiring more staff, a survey revealed, which implies that the Bank of England will hike interest rates from their record low.

According to the Chartered Institute of Personnel and Development, employers see their pay hikes to average one percent despite more of them expecting to raise staff levels than in its earlier survey three months ago.

As private-sector employers expect to increase pay by an average two percent, the median pay rise was pulled down by public-sector employers and charities that plan to offer pay hikes of one percent and 1.4 percent respectively.

According to the CIPD, the weak outlook for wages was somewhat due to growth in migration from the European Union as well as the count of people looking for work over the past year.

The BoE is paying close attention as it considers whether to hike rates. The central bank anticipated wages to begin increasing more quickly as employment accelerated. However, this has failed to materialize despite a record-peak number of people in work.

The material has been provided by InstaForex Company – www.instaforex.com

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