The labour market is thriving – but rates won't be rising just yet | Larry Elliott

Despite high employment levels and good pay growth, Brexit uncertainty will weigh heavily on the economy for some time

Employment is at record levels. Firms are struggling to hire workers. Pay growth is back to levels last seen before the financial crisis of a decade ago. So what does the Bank of England do?

In normal circumstances, it would be a no-brainer. Some members of Threadneedle Street's monetary policy committee would already be voting for an increase in borrowing costs and the City would be assuming action from the Bank in February. After all, at 0.75%, official rates are extremely low by historic standards.

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