Wages grew at a slower pace in the three months to November in a sign that the economy is moving closer to interest rate cuts.

Total pay including bonuses increased by 6.5pc over the period, down from 7.2pc in the three months to October, according to the Office for National Statistics. 

Economists had expected growth of 6.8pc.

The fall may provide some relief to mortgage holders hoping that the Bank of England will begin cutting interest rates this year from their 16-year highs of 5.25pc.

Deputy governor Ben Broadbent said last month “it will probably require a more protracted and clearer decline” in wage rises “before the Monetary Policy Committee (MPC) can safely conclude that things are on a firmly downward trend”.

Strong wage growth is viewed as a risk to inflation.

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