FX.co ★ Pound Hits Lowest Level Since August as Wage Growth Slows

The British pound dipped below the $1.33 mark, marking its lowest point since August 1. This decline follows data indicating slower wage growth, which has fueled anticipation that the Bank of England might persist with interest rate cuts, although at a steady pace. Recent figures from the UK employment report revealed that regular pay growth decelerated to 4.7% between June and August 2025, a slight drop from the previous 4.8% recorded over the prior three months. This rate represents the most sluggish growth since the March–May period of 2022. Additionally, other significant indicators suggest that the UK labor market is reaching equilibrium: the unemployment rate saw a marginal increase to 4.8%, slightly exceeding the predicted 4.7%, while decreases in payroll figures and job vacancies seem to be stabilizing.