Better-than-expected UK Jobs Data Provides Justification For Bank Of England Rate Hike

As of January, the unemployment rate in the United Kingdom based on the International Labour Organization (ILO) standard continued to fall to 3.9%, down 0.2 percentage points from the previous value, and the market had expected 4%. Over the same period, total employment fell by 12,000, the second straight monthly decline, and the market had expected an increase of 20,000. As for wages, average weekly wages increased by 4.8% year-on-year, up 0.5 percentage points from the previous value and higher than the market expectation of 4.6%. Wages, excluding bonuses, rose 3.8%, beating market expectations for a 3.7% increase and the previous 3.7% increase. The strong employment numbers, coupled with a bigger-than-expected rise in wages, could justify another rate hike by the Bank of England.