The latest data for wage growth show that increases have fallen to their lowest level since the middle of 2020. This satisfies the more hawkish monetary policy committee members that there is likely a significant rise in demand driven by a loosening of monetary policy.Bank of England Governor, Andrew Bailey, has been more pragmatic about the prospect of a cut in interest rates recently. He acknowledges that there is an economic need for rates to be lowered, even though his preference would be for inflation to have fallen to the Bank’s 2% target. His comment that inflation does not have to have fallen to that level before rates are cut if it is consistently moving in the right direction, has led the market to believe that the Bank is committed to cutting rates.The next opportunity for the first cut to take place is at the meeting which takes place on May 9th, however, there was no indication at the meeting a little over two weeks ago that the committee is happy that prices are at a level where they would be comfortable cutting rates, and the market expects that there will be a significant amount of advance guidance provided that a cut is imminent.The concern that a wage/price spiral was beginning which would see inflation climb due to the additional costs firms incurred that would force them to raise prices, which in turn led to businesses facing demands for higher wage increases which created a seemingly endless round of higher wages and prices appears to have eased. This should see one of the major concerns of independent MPC members Catherine Mann and Jonathan Haskell removed.Beyond Currency Market Commentary:Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.