THE Bank of England has been warned not to overplay the risk of wage growth to inflation, with next month’s possible interest rates cut the “shot in the arm” needed for the stagnating economy.

The TUC and economic experts have said warnings over the average wage going up 5.6 per cent in the year up to November should be welcomed as a positive sign among the more worrying trend of Britain’s stagnating economy.

Official figures have shown that the total number of paid employees in the UK fell by 47,000 to 30.3 million in December — the biggest drop since November 2020.