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Wage growth remains pivotal to timing of MPC rate rise

Low inflation is likely to have meant that the MPC’s decision to keep Bank Rate at 0.5% this month was straightforward. And while signs that the recovery is maintaining its pace and pay growth is rising suggest that a majority to raise rates could be mustered by mid-2015, yesterday’s Autumn Statement, which left an intensifying fiscal squeeze in place, suggests that rates are only likely to rise very slowly. 

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