Stronger-than-expected employment data raises possibility of a UK rate hike

Vacancies hit high of 1.17m

The Bank of England MPC meeting raised eyebrows and furrowed brows in equal measure, as members voted 7-2 to keep UK base rates unchanged at just 0.1% (as they have been since March 2020). The committee also voted 6-3 to leave the existing asset purchase scheme unadjusted for the time being.

Expectations for a rate hike had reached fever pitch walking into the meeting, so it was no surprise to see markets deflate a little when the result did not turn out as expected. Andrew Bailey, the governor...