Deloitte: Weakening labor market may prompt further rate cuts by the Bank of England.

In a research report to clients, Deloitte's chief economist Ian Stewart wrote that signs of a slowdown in the UK job market could prompt further interest rate cuts later this year. Stewart noted that despite strong wage growth in the face of rising unemployment and decreasing job vacancies, cautious employers may continue to drive up the unemployment rate and slow down wage increases. "A weakening labor market could strengthen the case for further interest rate cuts later this year," he said.