Pound falls as UK wage growth slows and unemployment rises
Sterling fell Tuesday as UK wage growth slowed to 4.2% and unemployment hit 5.2%. The data fuels expectations for further Bank of England interest rate cuts.
Official labour-market data released today, February 17, 2026, indicates that wage growth in Britain 
GB slowed to 4.2% year-on-year in December, while the unemployment rate rose to 5.2% during the same month. These figures, which were announced earlier this morning, triggered an immediate reaction in the foreign exchange market, where the sterling (pound) experienced a notable decline. This softening of the labour market is expected to strengthen the case for the Bank of England to consider further interest rate cuts in the coming months.
GB slowed to 4.2% year-on-year in December, while the unemployment rate rose to 5.2% during the same month. These figures, which were announced earlier this morning, triggered an immediate reaction in the foreign exchange market, where the sterling (pound) experienced a notable decline. This softening of the labour market is expected to strengthen the case for the Bank of England to consider further interest rate cuts in the coming months.
