Bank of England Holds Rates Steady, Cautions on Wages

The Bank of England cautioned Thursday said consumer spending is slowing in response to rising inflation.

The central bank noted that aggregate demand slowed in the first quarter, with the slowdown concentrated in consumer-facing sectors. The bank expects growth to be slower in the near term but pick up in the latter part of the forecast period as real income picks up.

"Wage growth remains subdued," the Bank of England said in its quarterly inflation report. "Household consumption growth appears to be slowing in response to the resultant weakness in real income growth."

This article was written by a staff member of TheStreet.