PAY deals in engineering and manufacturing firms remain at an historically low level, figures from the Engineering Employers' Federation (EEF) reveal.
For the three months to the end of May, the average settlement was 2.1 per cent, the same as the previous three months.
Nearly one in four firms froze staff pay, while almost ten per cent deferred settlements, according to an analysis of 383 deals affecting more than 55,000 staff.
The EEF said the figures showed it would be premature for the Bank of England's monetary policy committee to raise interest rates.
David Yeandle, EEF deputy director of employment policy, said: "The continuing historically low level of engineering pay settlements confirms that there is no wage inflation pressure in this sector.
"It therefore reinforces our view that it would be premature for the monetary policy committee to consider raising interest rates."
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