Wage growth in the UK speeded up amid the lowest unemployment level in more than forty years, Bloomberg reports.

Wages excluding bonuses showed 2,9% annual growth in three months through July. This is higher than economists predicted. Unemployment level was 4%. This is the lowest since 1975. Only in July basic pay increased by 3,1% compared with the last year.

Strengthening labor market made Bank of England raise interest rate to the highest level since 2009 last month.

Basic wage is growing even faster than prices providing relief for Britons that were in situation with modest revenues growth as well as inflation caused by pound weakening. Real wage is still below pre-crisis level.

Pound grew after data was published.

Bank of England forecasted 3,5% wage growth by next year.