Carney's optimism on UK wage growth challenged by report

London

BRITONS face a "rockier" labour market in the coming years that's going to limit an improvement in wage growth, according to EY Item Club.

The forecasts published on Monday are in contrast to the medium-term outlook presented by Mark Carney last week.

While the Bank of England governor warned of a "challenging" 2017 for workers as inflation outpaces pay gains, the BOE sees a pick up from later this year, with wages growing close to 4 per cent in 2019. In contrast, EY sees "negligible" real wage gains with nominal improvements…