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Rates for IT staff working in finance have gone up for the first time in four years. The news is being welcomed as evidence that a City recovery is underway.

Average hourly rates rose two per cent to £45 an hour in the second half of last year - down from a peak of £75 four years ago.

The figures come from the quarterly survey by the Association of Technology Staffing Companies.The Association believes the rise in pay does signal a recovery.

Ann Swain of ATSCO told the FT: "It now seems as if we are seeing the first glimmer of recovery in the sector that fell the furthest in the stock market crash." ®

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