Recent data on wages provides some assurance that wages growth has troughed. The majority of firms surveyed in the Bank’s liaison program expect wages growth to remain broadly stable over the period ahead. Over the past year, there has been a pick-up in firms expecting higher wage growth outcomes.
Nonetheless, caution is called for when looking at projections for this group of economies as a whole, as they mask salient divergences and a high degree of heterogeneity in terms of individual economies’ and regional performance.