Wages are rising for the lowest earners in Britain and so the Bank of England should not wait too long before gradually raising interest rates, a top policymaker believes.
Official average pay numbers look gloomy because they are skewed by the highest earners in the country, whose wages are not rising as fast as they were in the boom years before the financial crisis.
But those at the bottom of the heap are getting stronger pay growth, in part because of hikes to the minimum wage, said Monetary Policy Committee member Silvana Tenreyro.
These workers are particularly important when it comes to making the goods and services which are used to calculate inflation, so if their pay is going up, it...