Wages grew at a new record pace, official figures show, but the jobs market is loosening as the Bank of England prepares to announce its latest interest rate decision.

The average annual growth in total pay, including bonuses, was 7.2pc in the three months to October, the Office for National Statistics said.

However, this was down from 8.5pc in the three months to July and comes despite the estimated number of vacancies in the UK falling by 45,000 in the three months to November to 949,000.

The data showed that annual growth for total pay rose in real terms by 1.3pc during the year, well below the latest inflation figure of 4.6pc. 

The rate of UK unemployment remained unchanged at 4.2pc.

The figures will encourage policymakers at the Bank of England that raising interest rates to 15-year highs of 5.25pc is slowing down the economy and helping to ease inflation.

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