Strong UK pay growth could limit interest rate cuts, Bank policymaker warns

Megan Greene says apparent end to the decline in wage growth could hinder fight against inflation

The Bank of England may not be able to lower interest rates as much as expected this year, due to strong UK pay growth and expected rate cuts in the US, one of its top policymakers has said.

Megan Greene, a member of the Bank's monetary policy committee (MPC), which sets interest rates in the UK, said she was concerned that wages appeared to be growing strongly again this year and this could stop inflation from easing.