Bank sees 'no immediate need' for rate rise despite jobless slump

Anna Fedorova
clock

The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.

The unemployment rate fell by more than expected this morning, from 7.4% to 7.1% in the three months to November, prompting a rise in gilt yields. Data from Tradeweb shows the yield on 10-year gilts rose by 2.84% to 2.9% following the release of the data at 9:30am. The Bank of England has previously said it will consider increasing interest rates when the unemployment rate falls to 7%, a move which would be negative for bondholders. The faster-than-expected fall in the unemployment rate has prompted market participants to anticipate a rise in interest rates earlier than previously ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot