UK's higher wage growth and MPC comments indicate hike is moving closer

The combination of increasing wage growth and very low inflation implies increasing real wage growth, which is at its highest level since September 2007 .

As inflation is mainly low due to the drop in energy and food prices, this supports private consumption and thus the UK recovery. 

"There are signs that the improvement in the labour market has eased off recently", says Danske Bank. 

Against expectation the unemployment rate (3M) increased to 5.6% in May due to lower employment. In the three months to May employment declined by 67,000 compared to the three months to February. 

It is the first time since March 2013 and only the fifth time since the end of 2011 that employment has declined. The number of unemployed people increased by 15,000 as the size of the labour force fell.