The UK labour market is set to weaken in coming months, crimping household spending and possibly curtailing inflation and economic growth, according to one of the Bank of England’s monetary policymakers.

In a speech he is due to give to the Bank’s agents in Wales on Wednesday, David Blanchflower will say he believes the labour market has “continued to loosen since the August meeting” at which the monetary policy committee voted to increase interest rates by a quarter point to 4.75 per cent.