UK employers plan smaller pay rises over the coming year

Workers walk through the Canary Wharf financial district in London. — Reuters

LONDON: UK employers plan smaller pay rises over the coming year than they did three months ago, the first such drop in nearly four years, reflecting less willingness to tolerate higher labour costs, a major survey shows.

The figures are likely to increase confidence among Bank of England (BoE) policymakers that domestic inflation pressures are easing following recent sharp falls in energy prices, paving the way for lower interest rates later this year.