Bank of England expected to hold rates at 3.75% as UK unemployment falls
8 reported
The Bank of England is widely expected to leave interest rates unchanged at 3.75% at noon today, according to a single-source report from The Guardian. City money markets indicate a 98% chance rates will be held, with only a 2% chance of a rise. The decision comes as the UK economy shrank slightly in April and inflation was lower than forecast in May. The UK unemployment rate ticked down to 4.9%, while payrolled employment rose by a marginal 2,000 workers after three consecutive monthly declines. However, private sector real wages have been falling since last October, and the number of vacancies dropped to a five-year low of 707,000. Oil prices have fallen to their lowest since early March, with Brent crude trading around $78 a barrel, down from a peak over $126 at the end of April.
What’s reported
The Bank of England is widely expected to leave interest rates unchanged at 3.75% at noon today.
City money markets indicate a 98% chance rates are left on hold, and a 2% chance of a rise.
The UK economy shrank slightly in April, and inflation was lower than forecast in May.
The UK unemployment rate ticked down to 4.9%.
Payrolled employment rose by a marginal 2,000 workers after three consecutive monthly declines.
Private sector real wages have been falling since last October.
Vacancies fell by 19,000 in March to May, to 707,000 – the lowest level since February to April 2021.
Brent crude oil fell to as low as $77 a barrel, its lowest since 2 March, down from a peak over $126 at the end of April.
Key figures
Tomasz Wieladek, chief European macro economist at investment management firm T. Rowe Price
Louise Murphy, senior economist at the Resolution Foundation
Sanjay Raja, chief UK economist at Deutsche Bank
Anna Leach, chief economist at the Institute of Directors
James Smith, ING economist
Kristalina Georgieva, head of the International Monetary Fund
Ida Wolden Bache, governor of Norway’s central bank
Sources: The Guardian
