Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Strong Labour Market Report Supports Our Call For A BOE Hike In November

Published 04/19/2015, 05:19 AM
Updated 05/14/2017, 06:45 AM

The UK labour market statistics released today show that the labour market continued to improve. The unemployment rate (3M (NYSE:MMM)) declined from 5.7% in January to 5.6% in February (Danske Bank: 5.7%, consensus: 5.6%). In our view, this is a strong report that supports our call for a BoE hike in November 2015, see also Research UK: We have moved the first BoE hike to November 2015 , 15 April.

The unemployment rate is now very close to the Bank of England (BoE)'s estimated medium-term equilibrium unemployment rate at 5.5%. This is more or less in line with the projections from the latest Inflation Report, which suggested that this could happen in Q2 15. In other words, the unemployment rate is close to normal and the slack in the labour market is diminishing, which is important for the timing of the first BoE hike. Hence the fall in the unemployment rate supports our view of a BoE hike later this year.

To Read the Entire Report Please Click on the pdf File Below

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.