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Bank of England governor Mark Carney has warned that the rising number of migrant workers in Britain is keeping wages down.

The Bank also dealt George Osborne a major blow by slashing ­its growth forecast for the economy over the next three years.

Official figures showed average earnings rose only 1.9% in the year to March.

The Bank said net migration to the UK is growing at 85,000 a year more than predicted by the Office for National Statistics.

Speaking as the Bank gave its quarterly update on the economy, Mr Carney said: “In recent years labour supply has expanded significantly... partly driven by higher net migration.

“These labour supply shocks have contained wage growth in the face of robust employment growth. A key risk is that these subdued growth rates continue.”

The Bank predicted wages would rise by 2.5% this year, down from the 3.5% it expected in February.

(Image: Getty / PA)

TUC chief Frances O’Grady said many people had fewer hours of work than they need.

She added: “We still don’t have enough of the well-paid, secure jobs that people want for themselves and their children.”

To Mr Osborne’s dismay, the growth forecast for this year was cut from 2.9% to 2.5%, next year’s from 2.9% to 2.6% and 2017’s from 2.7% to 2.4%.

Mr Carney said the UK faced “persistent headwinds”. Economist Howard Archer said: “The downward revisions will be disappointing for Mr Osborne.”

The economy grew by just 0.3% in the first three months of 2015.